(a) For the purpose of this Article any person or firm
or corporation who for a fixed price, commission, fee, or wage, undertakes to
bid upon or to construct or who undertakes to superintend or manage, on his own
behalf or for any person, firm, or corporation that is not licensed as a
general contractor pursuant to this Article, the construction of any building,
highway, public utilities, grading or any improvement or structure where the
cost of the undertaking is thirty thousand dollars ($30,000) or more, or
undertakes to erect a North Carolina labeled manufactured modular building
meeting the North Carolina State Building Code, shall be deemed to be a
"general contractor" engaged in the business of general contracting
in the State of North Carolina.

(2) Any person, firm, or corporation who constructs or
alters a building on land owned by that person, firm, or corporation provided
(i) the building is intended solely for occupancy by that person and his
family, firm, or corporation after completion; and (ii) the person, firm, or
corporation complies with G.S. 87-14. If the building is not occupied solely by
the person and his family, firm, or corporation for at least 12 months
following completion, it shall be presumed that the person, firm, or
corporation did not intend the building solely for occupancy by that person and
his family, firm, or corporation.

G.S. 87-1 shall not apply to a licensee under Article 2 or 4
of this Chapter of the General Statutes, G.S. 87-43 shall not apply to a
licensee under Article 2 of this Chapter of the General Statutes, and G.S. 87-21(a)(5)
shall not apply to a licensee under Article 4 of this Chapter of the General
Statutes when the licensee is bidding and contracting directly with the owner
of a public building project if: (i) a licensed general contractor performs all
work that falls within the classifications in G.S. 87-10(b) and the State
Licensing Board of General Contractor's rules; and (ii) the total amount of the
general contracting work so classified does not exceed a percentage of the
total bid price pursuant to rules established by the. Board; and (iii) a
licensee with the appropriate license under Article 2 or Article 4 of this
Chapter performs all work that falls within the classifications in Article 2
and Article 4 of this Chapter. (2003-231, s. 1; 2006-241,
s. 2; 2006-259, s. 43; 2006-261, s. 3.)

The letting of contracts for the types of projects specified
in G.S. 136-28.14 shall not be subject to the licensing requirement of this
Article. (2006-261, s. 2.)

§ 87-2. Licensing Board;
organization.

There is created the State Licensing Board for General
Contractors consisting of nine members appointed by the Governor for staggered
five-year terms. Five of the members shall be general contractors, one member
shall be a registered engineer who practices structural engineering, and three
shall be public members. Of the general contractor members, one shall have as
the larger part of his business the construction of highways; one shall have as
the larger part of his business the construction of public utilities; one shall
have as the larger part of his business the construction of buildings; and two
shall have as a larger part of their businesses the construction of residences,
one of whom shall be the holder of an unlimited general contractor's license.
The public members shall have no ties with the construction industry and shall
represent the interests of the public at large. Members shall serve until the
expiration of their respective terms and until their successors are appointed
and qualified. Vacancies occurring during a term shall be filled by appointment
of the Governor for the remainder of the unexpired term. The Governor may
remove any member of the Board for misconduct, incompetency, or neglect of
duty. No Board member shall serve more than two complete consecutive terms. (1925, c. 318, s. 2; 1979, c. 713, s.
1; 1991, c. 124, s. 1.)

§ 87-3. Members of Board to take oath.

Each member of the Board shall, before entering upon the
discharge of the duties of his office, take and file with the Secretary of
State an oath in writing to properly perform the duties of his office as a
member of said Board and to uphold the Constitution of North Carolina and the
Constitution of the United States. (1925, c. 318, s.
3.)

§ 87-4. First meeting of Board; officers; secretary-treasurer
and assistants.

The said Board shall, within 30 days after its appointment by
the Governor, meet in the City of Raleigh, at a time and place to be designated
by the Governor, and organize by electing a chairman, a vice-chairman, and a
secretary-treasurer, each to serve for one year. Said Board shall have power
to make such bylaws, rules and regulations as it shall deem best, provided the
same are not in conflict with the laws of North Carolina. The secretary-treasurer
shall give bond in such sum as the Board shall determine, with such security as
shall be approved by the Board, said bond to be conditioned for the faithful
performance of the duties of his office and for the faithful accounting of all
moneys and other property as shall come into his hands. The secretary-treasurer
need not be a member of the Board, and the Board is hereby authorized to employ
a full-time secretary-treasurer, and such other assistants and make such other
expenditures as may be necessary to the proper carrying out of the provisions
of this Article. Payment of compensation and reimbursement of expenses of board
members shall be governed by G.S. 93B-5. (1925, c.
318, s. 4; 1941, c. 257, s. 4; 1947, c. 611; 1951, c. 453; 1979, c. 713, s. 6.)

§ 87-5. Seal of Board.

The Board shall adopt a seal for its own use. The seal shall
have the words "North Carolina Licensing Board for General
Contractors" and the secretary shall have charge, care and custody
thereof. (1925, c. 318, s. 5; 1979, c. 713, s. 7.)

§ 87-6. Meetings; notice; quorum.

The Board shall meet twice each year, once in April and once
in October, for the purpose of transacting such business as may properly come
before it. At the April meeting in each year the Board shall elect officers.
Special meetings may be held at such times as the Board may provide in the
bylaws it shall adopt. Due notice of each meeting and the time and place
thereof shall be given to each member in such manner as the bylaws may provide.
Five members of the Board shall constitute a quorum. (1925,
c. 318, s. 6; 1979, c. 713, s. 8.)

§ 87-7. Records of Board; disposition of funds.

The secretary-treasurer shall keep a record of the
proceedings of the said Board and shall receive and account for all moneys
derived from the operation of this Article. Any funds remaining in the hands of
the secretary-treasurer to the credit of the Board after the expenses of the
Board for the current year have been paid shall be paid over to the Greater
University of North Carolina for the use of the School of Engineering through
the North Carolina Engineering Foundation. The Board has the right, however, to
retain at least ten percent (10%) of the total expense it incurs for a year's
operation to meet any emergency that may arise. As an expense of the Board,
said Board is authorized to expend such funds as it deems necessary to provide
retirement and disability compensation for its employees. (1925, c. 318, s. 7; 1953, c. 805, s. 1; 1959, c. 1184.)

§ 87-8. Records; roster of licensed contractors; report to
Governor.

The secretary-treasurer shall keep a record of the
proceedings of the Board and a register of all applicants for license showing
for each the date of application, name, qualifications, place of business,
place of residence, and whether license was granted or refused. The books and
register of this Board shall be prima facie evidence of all matters recorded
therein. A roster showing the names and places of business and of residence of
all licensed general contractors shall be prepared by the secretary of the
Board during the month of March of each year; the roster shall be printed by
the Board out of funds of the Board as provided in G.S. 87-7, with copies being
made available to contractors and members of the public, at cost, upon request,
or furnished without cost, as directed by the Board. On or before the last day
of March of each year the Board shall submit to the Governor a report of its
transactions for the preceding year, and shall file with the Secretary of State
a copy of the report, together with a complete statement of the receipts and
expenditures of the Board, attested by the affidavits of the chairman and the
secretary, and a copy of the roster of licensed general contractors. (1925, c. 318, s. 8; 1937, c. 429, s. 2; 1985, c. 630, s. 1;
1993, c. 148, s. 1.)

Nothing in this Article shall operate to prevent the
Department of Transportation from complying with any act of Congress and any
rules and regulations promulgated pursuant thereto for carrying out the
provisions of the Federal Highway Act, or shall apply to any person, firm or
corporation proposing to submit a bid or enter into contract for any work to be
financed in whole or in part with federal aid road funds in such manner as will
conflict with any act of Congress or any such rules and regulations promulgated
pursuant thereto.

Neither shall anything in this Article prevent the State of
North Carolina or any of its political subdivisions or their contractors from
complying with any act of Congress and any rules and regulations promulgated
pursuant thereto for carrying out the provisions of any federal program to
assist in the planning, financing, or construction of drinking water or waste
water processing, collection, and disposal systems and facilities. (1939, c. 230; 1971, c. 246, s. 2; 1973, c. 507, s. 5; 1977,
c. 464, s. 34; 1989, c. 159.)

§ 87-9.1. Ownership of real property; equipment; liability
insurance.

(a) The Board shall have the power to acquire, hold,
rent, encumber, alienate, and otherwise deal with real property in the same
manner as a private person or corporation, subject only to approval of the
Governor and the Council of State as to the acquisition, rental, encumbering,
leasing, and sale of real property. Collateral pledged by the Board for an
encumbrance is limited to the assets, income, and revenues of the Board.

(b) The Board may purchase or rent equipment and
supplies and purchase liability insurance or other insurance to cover the
activities of the Board, its operations, or its employees. (1999-349, s. 1.)

§ 87-10. Application for license; examination; certificate;
renewal.

(a) Anyone seeking to be licensed as a general
contractor in this State shall submit an application. Before being entitled to
an examination, an applicant shall:

(1) Be at least 18 years of age.

(2) Possess good moral character as determined by the
Board.

(3) Provide evidence of financial responsibility as
determined by the Board.

(4) Submit the appropriate application fee.

(a1) The Board shall require an applicant to pay the
Board or a provider contracted by the Board an examination fee not to exceed
one hundred dollars ($100.00). In addition, the Board shall require an
applicant to pay the Board a fee not to exceed one hundred twenty-five dollars
($125.00) if the application is for an unlimited license, one hundred dollars
($100.00) if the application is for an intermediate license, or seventy-five
dollars ($75.00) if the application is for a limited license. The fees
accompanying any application or examination shall be nonrefundable. The holder
of an unlimited license shall be entitled to act as general contractor without
restriction as to value of any single project; the holder of an intermediate license
shall be entitled to act as general contractor for any single project with a
value of up to one million dollars ($1,000,000), excluding the cost of land and
any ancillary costs to improve the land; the holder of a limited license shall
be entitled to act as general contractor for any single project with a value of
up to five hundred thousand dollars ($500,000), excluding the cost of land and
any ancillary costs to improve the land. The license certificate shall be
classified in accordance with this section.

(b) An applicant shall identify an individual who has
successfully passed an examination approved by the Board who, for purposes of
this section, shall be known as the "qualifier" or the
"qualifying party" of the applicant. If the qualifier or the qualifying
party seeks to take an examination, the examination shall establish (i) the
ability of the applicant to make a practical application of the applicant's
knowledge of the profession of contracting; (ii) the qualifications of the
applicant in reading plans and specifications, knowledge of relevant matters
contained in the North Carolina State Building Code, knowledge of estimating
costs, construction, ethics, and other similar matters pertaining to the
contracting business; (iii) the knowledge of the applicant as to the
responsibilities of a contractor to the public and of the requirements of the
laws of the State of North Carolina relating to contractors, construction, and
liens; and (iv) the applicant's knowledge of requirements of the Sedimentation
Pollution Control Act of 1973, Article 4 of Chapter 113A of the General
Statutes, and the rules adopted pursuant to that Article. If the qualifier or
qualifying party passes the examination, upon review of the application and all
relevant information, the Board shall issue a license to the applicant to
engage in general contracting in the State of North Carolina, which may be
limited as follows:

(1) Building contractor, which shall include private,
public, commercial, industrial and residential buildings of all types.

(1a) Residential contractor, which shall include any
general contractor constructing only residences which are required to conform
to the residential building code adopted by the Building Code Council pursuant
to G.S. 143-138.

(2) Highway contractor.

(3) Public utilities contractors, which shall include
those whose operations are the performance of construction work on the
following subclassifications of facilities:

a. Water and sewer mains, water service lines, and
house and building sewer lines as defined in the North Carolina State Building
Code, and water storage tanks, lift stations, pumping stations, and
appurtenances to water storage tanks, lift stations, and pumping stations.

b. Water and wastewater treatment facilities and
appurtenances thereto.

c. Electrical power transmission facilities, and
primary and secondary distribution facilities ahead of the point of delivery of
electric service to the customer.

d. Public communication distribution facilities.

e. Natural gas and other petroleum products
distribution facilities; provided the General Contractors Licensing Board may
issue license to a public utilities contractor limited to any of the above
subclassifications for which the general contractor qualifies.

(4) Specialty contractor, which shall include those
whose operations as such are the performance of construction work requiring
special skill and involving the use of specialized building trades or crafts,
but which shall not include any operations now or hereafter under the
jurisdiction, for the issuance of license, by any board or commission pursuant
to the laws of the State of North Carolina.

(b1) Public utilities contractors constructing house and
building sewer lines as provided in sub-subdivision a. of subdivision (3) of
subsection (b) of this section shall, at the junction of the public sewer line
and the house or building sewer line, install as an extension of the public
sewer line a cleanout at or near the property line that terminates at or above
the finished grade. Public utilities contractors constructing water service
lines as provided in sub-subdivision a. of subdivision (3) of subsection (b) of
this section shall terminate the water service lines at a valve, box, or meter
at which the facilities from the building may be connected. Public utilities
contractors constructing fire service mains for connection to fire sprinkler
systems shall terminate those lines at a flange, cap, plug, or valve inside the
building one foot above the finished floor. All fire service mains shall comply
with the NFPA standards for fire service mains as incorporated into and made
applicable by Volume V of the North Carolina Building Code.

(c) If an applicant is an individual, examination may
be taken by his personal appearance for examination, or by the appearance for
examination of one or more of his responsible managing employees. If an
applicant is a copartnership, a corporation, or any other combination or
organization, the examination may be taken by one or more of the responsible
managing officers or members of the personnel of the applicant.

(c1) If the qualifier or qualifying party shall cease to
be connected with the licensee, then the license shall remain in full force and
effect for a period of 90 days. After 90 days, the license shall be
invalidated, however the licensee shall be entitled to return to active status
pursuant to all relevant statutes and rules promulgated by the Board. However,
during the 90-day period described in this subsection, the licensee shall not
bid on or undertake any additional contracts from the time such qualifier or
qualifying party ceased to be connected with the licensee until the license is
reinstated as provided in this Article.

(d) Repealed by Session Laws 2017-10, s. 2.13(a),
effective October 1, 2017, and applicable to applications for licensure
submitted on or after that date.

(d1) The Board may require a new application if a
qualifier or qualifying party requests to take an examination a third or
subsequent time.

(e) A license shall expire on the first day of January
following its issuance or renewal and shall become invalid 60 days from that
date unless renewed, subject to the approval of the Board. Renewal applications
shall be submitted with a fee not to exceed one hundred twenty-five dollars
($125.00) for an unlimited license, one hundred dollars ($100.00) for an
intermediate license, and seventy-five dollars ($75.00) for a limited license.
Renewal applications shall be accompanied by evidence of continued financial
responsibility satisfactory to the Board. Renewal applications received by the
Board on or after the first day of January shall be accompanied by a late
payment of ten dollars ($10.00) for each month or part after January.

(1) Delinquent income tax debt. - The amount of income
tax due as stated in a final notice of assessment issued to a taxpayer by the
Secretary of Revenue when the taxpayer no longer has the right to contest the
amount.

(4) Foreign limited liability company. - Has the same
meaning as the term "foreign LLC" in G.S. 57D-1-03.

(5) Foreign partnership. - Either of the following that
does not have a permanent place of business in this State:

a. A foreign limited partnership as defined in G.S. 59-102.

b. A general partnership formed under the laws of a
jurisdiction other than this State.

(b) Licensing. - The Board shall not issue a
certificate of license for a foreign corporation unless the corporation has
obtained a certificate of authority from the Secretary of State pursuant to
Article 15 of Chapter 55 of the General Statutes. The Board shall not issue a
certificate of license for a foreign limited liability company unless the
company has obtained a certificate of authority from the Secretary of State
pursuant to Article 7 of Chapter 57D of the General Statutes.

(c) Information. - Upon request, the Board shall
provide the Secretary of Revenue on an annual basis the name, address, and tax
identification number of every nonresident individual and foreign entity
licensed by the Board. The information shall be provided in the format required
by the Secretary of Revenue.

(d) Delinquents. - If the Secretary of Revenue
determines that any nonresident individual or foreign corporation licensed by
the board, a member of any foreign limited liability company licensed by the
Board, or a partner in any foreign partnership licensed by the Board, owes a
delinquent income tax debt, the Secretary of Revenue may notify the Board of
these nonresident individuals and foreign entities and instruct the Board not
to renew their certificates of license. The Board shall not renew the
certificate of license of such a nonresident individual or foreign entity
identified by the Secretary of Revenue unless the Board receives a written
statement from the Secretary that the debt either has been paid or is being
paid pursuant to an installment agreement. (1998-162,
ss. 4, 10; 2013-157, s. 20.)

(a) The Board shall have the power to refuse to issue
or renew or revoke, suspend, or restrict a certificate of license or to issue a
reprimand or take other disciplinary action if a general contractor licensed
under this Article is found guilty of any fraud or deceit in obtaining a
license, or gross negligence, incompetency, or misconduct in the practice of
his or her profession, or willful violation of any provision of this Article.
The Board shall also have the power to revoke, suspend, or otherwise restrict
the ability of any person to act as a qualifying party for a license to
practice general contracting, as provided in G.S. 87-10(c), for any
copartnership, corporation or any other organization or combination, if that
person committed any act in violation of the provisions of this section and the
Board may take disciplinary action against the individual license held by that
person.

(a1) Any person may prefer charges of fraud, deceit,
negligence, or misconduct against any general contractor licensed under this
Article. The charges shall be in writing and sworn to by the complainant and
submitted to the Board. The charges, unless dismissed without hearing by the
Board as unfounded or trivial, shall be heard and determined by the Board in
accordance with the provisions of Chapter 150B of the General Statutes.

(b) The Board shall adopt and publish guidelines,
consistent with the provisions of this Article, governing the suspension and
revocation of licenses.

(c) The Board shall establish and maintain a system
whereby detailed records are kept regarding complaints against each licensee.
This record shall include, for each licensee, the date and nature of each
complaint, investigatory action taken by the Board, any findings by the Board,
and the disposition of the matter.

(d) The Board may reissue a license to any person, firm
or corporation whose license has been revoked: Provided, five or more members
of the Board vote in favor of such reissuance for reasons the Board may deem
sufficient.

The Board shall immediately notify the Secretary of State of
its findings in the case of the revocation of a license or of the reissuance of
a revoked license.

A certificate of license to replace any certificate lost,
destroyed or mutilated may be issued subject to the rules and regulations of
the Board.

(e) The Board shall be entitled to recover its
reasonable administrative costs associated with the investigation and
prosecution of a violation of this Article or rules or regulations of the Board
up to a maximum of five thousand dollars ($5,000) for any licensee or
qualifying party found to have committed any of the following:

(1) Fraud or deceit in obtaining a license.

(2) Gross negligence, incompetency, or misconduct in
the practice of general contracting.

The issuance of a certificate of license or limited license
by this Board shall be evidence that the person, firm, or corporation named
therein is entitled to all the rights and privileges of a licensed or limited
licensed general contractor while said license remains unrevoked or unexpired.
A licensed general contractor holding a license which qualifies him for work as
described in G.S. 87-10 shall be authorized to perform the said work without
any additional occupational license, notwithstanding the provisions of any
other occupational licensing statute. A license issued by any other
occupational licensing board having jurisdiction over any work described in
G.S. 87-10 shall qualify such licensee to perform the work for which the
license qualifies him without obtaining the license from the General
Contractors Licensing Board. Nothing contained herein shall operate to relieve
any general contractor from the necessity of compliance with other provisions
of the law requiring building permits and construction in accordance with
appropriate provisions of the North Carolina State Building Code. (1925, c. 318, s. 11; 1937, c. 429, s. 5; 1975, c. 279, s.
4.)

Any person, firm, or corporation not being duly authorized
who shall contract for or bid upon the construction of any of the projects or
works enumerated in G.S. 87-1, without having first complied with the
provisions hereof, or who shall attempt to practice general contracting in the
State, except as provided for in this Article, and any person, firm, or
corporation presenting or attempting to file as his own the licensed
certificate of another or who shall give false or forged evidence of any kind
to the Board or to any member thereof in maintaining a certificate of license
or who falsely shall impersonate another or who shall use an expired or revoked
certificate of license, and any architect or engineer who recommends to any project
owner the award of a contract to anyone not properly licensed under this
Article, shall be deemed guilty of a Class 2 misdemeanor. And the Board may,
in its discretion, use its funds to defray the expense, legal or otherwise, in
the prosecution of any violations of this Article. No architect or engineer
shall be guilty of a violation of this section if his recommendation to award a
contract is made in reliance upon current written information received by him
from the appropriate Contractor Licensing Board of this State which information
erroneously indicates that the contractor being recommended for contract award
is properly licensed. (1925, c. 318, s. 12; 1931, c.
62, s. 3; 1937, c. 429, s. 6; 1983 (Reg. Sess., 1984), c. 970, s. 2; 1993, c.
539, s. 602; 1994, Ex. Sess., c. 24, s. 14(c).)

§ 87-13.1. Board may seek injunctive relief.

Whenever the Board determines that any person, firm or
corporation has violated or is violating any of the provisions of this Article
or rules and regulations of the Board promulgated under this Article, the Board
may apply to the superior court for a restraining order and injunction to
restrain the violation; and the superior courts have jurisdiction to grant the
requested relief, irrespective of whether or not criminal prosecution has been
instituted or administrative sanctions imposed by reason of the violation. The
court may award the Board its reasonable costs associated with the
investigation and prosecution of the violation. (1979,
c. 713, s. 4; 2003-97, s. 2; 2005-381, s. 5.)

§ 87-14. Regulations as to issue of building permits.

(a) Any person, firm, or corporation, upon making
application to the building inspector or such other authority of any
incorporated city, town, or county in North Carolina charged with the duty of
issuing building or other permits for the construction of any building,
highway, sewer, grading, or any improvement or structure where the cost thereof
is to be thirty thousand dollars ($30,000) or more, shall, before being
entitled to the issuance of a permit, satisfy the following:

(1) Furnish satisfactory proof to the inspector or
authority that the person seeking the permit or another person contracting to
superintend or manage the construction is duly licensed under the terms of this
Article to carry out or superintend the construction or is exempt from
licensure under G.S. 87-1(b). If an applicant claims an exemption from
licensure pursuant to G.S. 87-1(b)(2), the applicant for the building permit
shall execute a verified affidavit attesting to the following:

a. That the person is the owner of the property on
which the building is being constructed or, in the case of a firm or
corporation, is legally authorized to act on behalf of the firm or corporation.

b. That the person will personally superintend and
manage all aspects of the construction of the building and that the duty will
not be delegated to any other person not duly licensed under the terms of this
Article.

c. That the person will be personally present for all
inspections required by the North Carolina State Building Code, unless the
plans for the building were drawn and sealed by an architect licensed pursuant
to Chapter 83A of the General Statutes.

The building inspector or other
authority shall transmit a copy of the affidavit to the Board, who shall verify
that the applicant was validly entitled to claim the exemption under G.S. 87-1(b)(2).
If the Board determines that the applicant was not entitled to claim the
exemption under G.S. 87-1(b)(2), the building permit shall be revoked pursuant
to G.S. 153A-362 or G.S. 160A-422.

(2) Furnish proof that the person has in effect
Workers' Compensation insurance as required by Chapter 97 of the General
Statutes.

(3) Any person, firm, or corporation, upon making
application to the building inspector or such other authority of any
incorporated city, town, or county in North Carolina charged with the duty of
issuing building permits pursuant to G.S. 160A-417(a)(1) or G.S. 153A-357(a)(1)
for any improvements for which the combined cost is to be thirty thousand
dollars ($30,000) or more, other than for improvements to an existing single-family
residential dwelling unit as defined in G.S. 87-15.5(7) that the owner occupies
as a residence, or for the addition of an accessory building or accessory
structure as defined in the North Carolina Uniform Residential Building Code,
the use of which is incidental to that residential dwelling unit, shall be
required to provide to the building inspector or other authority the name,
physical and mailing address, telephone number, facsimile number, and
electronic mail address of the lien agent designated by the owner pursuant to
G.S. 44A-11.1(a).

(b) It shall be unlawful for the building inspector or
other authority to issue or allow the issuance of a building permit pursuant to
this section unless and until the applicant has furnished evidence that the
applicant is either exempt from the provisions of this Article and, if
applicable, fully complied with the provisions of subdivision (a)(1) of this
section, or is duly licensed under this Article to carry out or superintend the
work for which permit has been applied; and further, that the applicant has in
effect Workers' Compensation insurance as required by Chapter 97 of the General
Statutes. Any building inspector or other authority who is subject to and
violates the terms of this section shall be guilty of a Class 3 misdemeanor and
subject only to a fine of not more than fifty dollars ($50.00). (1925, c. 318, s. 13; 1931, c. 62, s. 4; 1937, c. 429, s.
7; 1949, c. 934; 1953, c. 809; 1969, c. 1063, s. 6; 1971, c. 246, s. 4; 1981,
c. 783, s. 2; 1989, c. 109, s. 2; 1991 (Reg. Sess., 1992), c. 840, s. 2; 1993,
c. 539, s. 603; 1994, Ex. Sess., c. 24, s. 14(c); 2011-376, s. 2; 2012-158, s. 4;
2013-117, s. 4.)

§ 87-15. Copy of Article included in specifications; bid not
considered unless contractor licensed.

All architects and engineers preparing plans and
specifications for work to be contracted in the State of North Carolina shall
include in their invitations to bidders and in their specifications a copy of
this Article or such portions thereof as are deemed necessary to convey to the
invited bidder, whether he be a resident or nonresident of this State and
whether a license has been issued to him or not, the information that it will
be necessary for him to show evidence of a license before his bid is
considered. (1925, c. 318, s. 14; 1937, c. 429, s. 8;
1941, c. 257, s. 2.)

§ 87-15.1. Reciprocity of licensing.

To the extent that other states which provide for the
licensing of general contractors provide for similar action, the Board in its
discretion may grant licenses of the same or equivalent classification to
general contractors licensed by other states, without written examination upon
satisfactory proof furnished to the Board that the qualifications of such
applicants are equal to the qualifications of holders of similar licenses in
North Carolina and upon payment of the required fee. (1971,
c. 246, s. 5.)

§ 87-15.2. Public awareness program.

The Board shall establish and implement a public awareness
program to inform the general public of the purpose and function of the Board. (1979, c. 713, s. 4.)

§ 87-15.3. Identity of complaining party confidential.

Once a complaint has been filed with the Board against a
licensee or an unlicensed general contractor, the Board may, in its discretion,
keep the identity of a complaining party confidential and not a public record
within the meaning of Chapter 132 of the General Statutes until a time no later
than the receipt of the complaint by the full Board for a disciplinary hearing
or injunctive action. (2003-97, s. 1)

§ 87-15.4. Builder designations created.

(a) A licensee who successfully completes the
educational requirements for accredited builder or accredited master builder,
as established by the North Carolina Builders Institute (Institute), shall be
designated by the Board as a "North Carolina Certified Accredited
Residential Builder" or "North Carolina Certified Accredited Master
Residential Builder," respectively. The Institute shall provide to the
Board written certification of those licensees who have successfully completed
the requirements for the designations. The certification shall remain in effect
as long as: (i) the licensee's license is in effect pursuant to G.S. 87-10; and
(ii) the licensee completes at least eight hours of continuing education each
calendar year as certified by the Institute.

(b) The Board shall approve for designation a licensee
who has successfully completed a course of study, deemed by the Board to be
equivalent to the educational requirements under subsection (a) of this
section, offered by a community college or by another provider, and who
completes the requisite number of hours of continuing education required by the
Board.

(c) The Board may use all powers granted to it under
this Article to enforce the provisions of this section and ensure that the
designations created by this section are conferred upon and used only by a
licensee who complies with the provisions of this section and any rules adopted
by the Board. (2007-417, s. 1.)

Article 1A.

Homeowners Recovery Fund.

§ 87-15.5. Definitions.

The following definitions apply in this Article:

(1) Applicant. - The owner or former owner of a single-family
residential dwelling unit who has suffered a reimbursable loss and has filed an
application for reimbursement from the Fund.

(2) Board. - The State Licensing Board for General
Contractors.

(3) Dishonest conduct. - Fraud or deceit in either of
the following:

a. Obtaining a license under Article 1 of Chapter 87
of the General Statutes.

b. The practice of general contracting by a general
contractor.

(4) Fund. - The Homeowners Recovery Fund.

(5) General contractor. - A person or other entity who
meets any of the following descriptions:

a. Is licensed under Article 1 of Chapter 87 of the
General Statutes.

b. Fraudulently procures any building permit by
presenting the license certificate of a general contractor.

c. Fraudulently procures any building permit by
falsely impersonating a licensed general contractor.

(6) Reimbursable loss. - A monetary loss that meets all
of the following requirements:

a. Results from dishonest or incompetent conduct by a
general contractor in constructing or altering a single-family residential
dwelling unit.

b. Is not paid, in whole or in part, by or on behalf
of the general contractor whose conduct caused the loss.

c. Is not covered by a bond, a surety agreement, or an
insurance contract.

(7) Single-family residential dwelling unit. - A separately
owned residence for use of one or more persons as a housekeeping unit with
space for eating, living, and permanent provisions for cooking and sanitation,
whether or not attached to other such residences. (1991,
c. 547, s. 1.)

§ 87-15.6. Homeowners Recovery Fund.

(a) The Homeowners Recovery Fund is established as a
special account of the Board. The Board shall administer the Fund. The purpose
of the Fund is to reimburse homeowners who have suffered a reimbursable loss in
constructing or altering a single-family residential dwelling unit.

(b) Whenever a general contractor applies for the
issuance of a permit for the construction of any single-family residential
dwelling unit or for the alteration of an existing single-family residential
dwelling unit, a city or county building inspector shall collect from the
general contractor a fee in the amount of ten dollars ($10.00) for each
dwelling unit to be constructed or altered under the permit. The city or county
inspector shall forward nine dollars ($9.00) of each fee collected to the Board
on a quarterly basis and the city or county may retain one dollar ($1.00) of
each fee collected. The Board shall deposit the fees received into the Fund.
The Board may accept donations and appropriations to the Fund. G.S. 87-7 shall
not apply to the Fund.

The Board may suspend collection of this fee for any year
upon a determination that the amount in the Fund is sufficient to meet likely
disbursements from the Fund for that year. The Board shall notify city and
county building inspectors when it suspends collection of the fee.

(a) The Board shall determine the procedure for
applying to the Board for reimbursement from the Fund, for processing
applications, for granting requests for reimbursement, and for the subrogation
or assignment of the rights of any reimbursed applicant. The Board shall
submit annually a report to the State Treasurer accounting for all monies
credited to and expended from the Fund.

(b) The Board may use monies in the Fund only for the
following purposes:

(1) To reimburse an applicant's reimbursable loss after
approval by the Board.

(2) To purchase insurance to cover reimbursable losses
when the Board finds it appropriate to do so.

(3) To invest amounts in the Fund that are not
currently needed to reimburse losses and maintain adequate reserves in the
manner in which State law allows fiduciaries to invest funds.

(4) To pay the expenses of the Board to administer the
Fund, including employment of counsel to prosecute subrogation claims. (1991, c. 547, s. 1.)

§ 87-15.8. Application for reimbursement.

(a) The Board shall prepare a form to be used to apply
for reimbursement from the Fund. Only a person whom the Board determines to
meet all of the following requirements may be reimbursed from the Fund:

(1) Has suffered a reimbursable loss in the
construction or alteration of a single-family residential dwelling unit owned
or previously owned by that person.

(2) Did not, directly or indirectly, obtain the
building permit in the person's own name or did use a general contractor.

(3) Has exhausted all civil remedies against the
general contractor whose conduct caused the loss and, if applicable, the
general contractor's estate, and has obtained a judgment against the general
contractor that remains unsatisfied. This requirement is waived if the person
is prevented from filing suit or obtaining a judgment against the contractor
due to the automatic stay provision of section 362 of the U.S. Bankruptcy Code.

(4) Has complied with the applicable rules of the
Board.

(b) The Board shall investigate all applications for
reimbursement and may reject or allow part or all of a claim based on the
amount of money in the Fund. The Board shall have complete discretion to
determine the order, amount, and manner of payment of approved applications.
All payments are a matter of privilege and not of right and no person has a
right to reimbursement from the Fund as a third party beneficiary or
otherwise. No attorney shall be compensated by the Board for prosecuting an
application before it. (1991, c. 547, s. 1.)

§ 87-15.9. Subrogation for reimbursement made.

The Board is subrogated to an applicant who is reimbursed
from the Fund in the amount reimbursed and may bring an action against the
general contractor whose conduct caused the reimbursable loss, the general
contractor's assets, or the general contractor's estate. The Board may enforce
any claims it may have for restitution or otherwise, and may employ and
compensate consultants, agents, legal counsel, and others it finds necessary
and appropriate to carry out its authority under this section. (1991, c. 547, s. 1.)

Article 2.

Plumbing and Heating Contractors.

§ 87-16. Board of Examiners; appointment; term of office.

There is created the State Board of Examiners of Plumbing,
Heating, and Fire Sprinkler Contractors consisting of seven members appointed
by the Governor: one member from a school of engineering of the Greater
University of North Carolina, one member who is a plumbing or mechanical
inspector from a city in North Carolina, one licensed air conditioning
contractor, one licensed plumbing contractor, one licensed heating contractor,
one licensed fire sprinkler contractor, and one person who has no tie with the
construction industry to represent the interests of the public at large.
Members serve for terms of seven years, with the term of one member expiring
each year. The term of the member initially appointed to fill the position of
licensed fire sprinkler contractor shall commence April 25, 1991. No member
appointed after June 7, 1979, shall serve more than one complete consecutive
term. Vacancies occurring during a term are filled by appointment of the
Governor for the remainder of the unexpired term. (1931,
c. 52, s. 1; 1939, c. 224, s. 1; 1971, c. 768, s. 1; 1973, c. 476, s. 128;
1979, c. 834, s. 1; 1989 (Reg. Sess., 1990), c. 842, s. 1; c. 978, s. 1.)

The Governor may remove any member of the Board for
misconduct, incompetency or neglect of duty. Each member of the Board shall be
a resident of this State at the time of his appointment. Each member of the
Board shall receive for attending sessions of the Board or of its committees
the amount of per diem, and for the time spent in necessary traveling in
carrying out the provisions of this Article, and in addition to the per diem
compensation, each member shall be reimbursed by the Board from funds in its
hands for necessary traveling expenses and for such expenses incurred in
carrying out the provisions hereof as shall be approved by a majority of the
members of the Board. Payment of compensation and reimbursement of expenses of
Board members shall be governed by G.S. 93B-5. (1931,
c. 52, s. 2; 1969, c. 445, s. 8; 1979, c. 834, ss. 2, 3.)

The Board shall, within 30 days after its appointment, meet
in the City of Raleigh and organize, and elect a chairman, secretary, and
treasurer, each to serve for one year. Thereafter the officers shall be elected
annually. The secretary and treasurer shall give bond approved by the Board for
the faithful performance of their duties in the sum as the Board may, from time
to time, determine. The Board shall have a common seal, shall formulate rules
to govern its actions, and is hereby authorized to employ personnel as it may
deem necessary to carry out the provisions of this Article. The Board shall
have the power to acquire, hold, rent, encumber, alienate, and otherwise deal
with real property in the same manner as a private person or corporation,
subject only to the approval of the Governor and the Council of State.
Collateral pledged by the Board for an encumbrance is limited to the assets,
income, and revenues of the Board. (1931, c. 52, s. 3;
1939, c. 224, s. 2; 1953, c. 254, s. 1; 2001-270, s. 1.)

§ 87-19. Regular and special meetings; quorum.

The Board after holding its first meeting as hereinbefore
provided, shall thereafter hold at least two regular meetings each year.
Special meetings may be held at such times and places as the bylaws and/or
rules of the Board provide; or as may be required in carrying out the
provisions hereof. A quorum of the Board shall consist of not less than four
members. (1931, c. 52, s. 4; 1989 (Reg. Sess., 1990),
c. 842, s. 2.)

§ 87-20. Record of proceedings and register of applicants;
reports.

The Board shall keep a record of its proceedings and a
register of all applicants for examination, showing the date of each
application, the name, age and other qualifications, place of business and
residence of each applicant. The books and records of the Board shall be prima
facie evidence of the correctness of the contents thereof. On or before the
first day of March of each year the Board shall submit to the Governor a report
of its activities for the preceding year, and file with the Secretary of State
a copy of such report, together with a statement of receipts and expenditures
of the Board attested by the chairman and secretary. (1931,
c. 52, s. 5.)

(1) The word "plumbing" is hereby defined to
be the system of pipes, fixtures, apparatus and appurtenances, installed upon
the premises, or in a building, to supply water thereto and to convey sewage or
other waste therefrom.

(2) The phrase "heating, group number one"
shall be deemed and held to be the heating system of a building, which requires
the use of high or low pressure steam, vapor or hot water, including all
piping, ducts, and mechanical equipment appurtenant thereto, within, adjacent
to or connected with a building, for comfort heating.

(3) The phrase "heating, group number two"
means an integral system for heating or cooling a building consisting of an
assemblage of interacting components producing conditioned air to raise or
lower the temperature, and having a mechanical refrigeration capacity in excess
of fifteen tons, and which circulates air. Systems installed in single-family
residences are included under heating group number three, regardless of size.
Holders of a heating group number three license who have heretofore installed
systems classified as heating group number two systems may nevertheless
service, replace, or make alterations to those installed systems until June 30,
2004.

(4) The phrase "heating, group number three"
shall be deemed and held to be a direct heating or cooling system of a building
that raises or lowers the temperature of the space within the building for the
purpose of comfort in which electric heating elements or products of combustion
exchange heat either directly with the building supply air or indirectly
through a heat exchanger using an air distribution system of ducts and having a
mechanical refrigeration capacity of 15 tons or less. A heating system
requiring air distribution ducts and supplied by ground water or utilizing a
coil supplied by water from a domestic hot water heater not exceeding 150
degrees Fahrenheit requires either plumbing or heating group number one license
to extend piping from valved connections in the domestic hot water system to
the heating coil and requires either heating group number one or heating group
number three license for installation of coil, duct work, controls, drains and
related appurtenances.

(5) Any person, firm or corporation, who for a valuable
consideration, (i) verifies, inspects, evaluates, tests, installs, alters or
restores, or offers to verify, inspect, evaluate, test, install, alter or
restore, either plumbing, heating group number one, or heating group number
two, or heating group number three, or (ii) verifies, inspects, evaluates,
tests, lays out, fabricates, installs, alters or restores, or offers to verify,
inspect, evaluate, test, lay out, fabricate, install, alter or restore fire
sprinklers, or any combination thereof, as defined in this Article, shall be
deemed and held to be engaged in the business of plumbing, heating, or fire
sprinkler contracting; provided, however, that nothing herein shall be deemed
to restrict the practice of qualified registered professional engineers. Any
person who installs a plumbing, heating, or fire sprinkler system on property
which at the time of installation was intended for sale or to be used primarily
for rental is deemed to be engaged in the business of plumbing, heating, or
fire sprinkler contracting without regard to receipt of consideration, unless
exempted elsewhere in this Article.

(6) The word "contractor" is hereby defined
to be a person, firm or corporation engaged in the business of plumbing,
heating, or fire sprinkler contracting.

(7) The word "heating" shall be deemed and
held to mean heating group number one, heating group number two, heating group
number three, or any combination thereof.

(8) Repealed by Session Laws 1997-298, s. 1.

(9) The word "Board" means the State Board of
Examiners of Plumbing, Heating, and Fire Sprinkler Contractors.

(10) The word "experience" means actual and
practical work directly related to the category of plumbing, heating group
number one, heating group number two, heating group number three, or fire
sprinkler contracting, and includes related work for which a license is not
required.

(11) The phrase "fire sprinkler" means an
automatic or manual sprinkler system designed to protect the interior or
exterior of a building or structure from fire, and where the primary
extinguishing agent is water. These systems include wet pipe and dry pipe
systems, preaction systems, water spray systems, foam water sprinkler systems,
foam water spray systems, nonfreeze systems, and circulating closed-loop
systems. These systems also include the overhead piping, combination
standpipes, inside hose connections, thermal systems used in connection with
the sprinklers, tanks, and pumps connected to the sprinklers, and controlling
valves and devices for actuating an alarm when the system is in operation. This
subsection shall not apply to owners of property who are building or improving
farm outbuildings. This subsection shall not include water and standpipe
systems having no connection with a fire sprinkler system. Nothing herein shall
prevent licensed plumbing contractors, utility contractors, or fire sprinkler
contractors from installing underground water supplies for fire sprinkler
systems.

(b) Classes of Licenses; Eligibility and Examination
of Applicant; Necessity for License. -

(1) In order to protect the public health, comfort and
safety, the Board shall establish two classes of licenses: Class I covering all
plumbing, heating, and fire sprinkler systems for all structures, and Class II
covering plumbing and heating systems in single-family detached residential
dwellings.

(2) Restricted licenses or classifications. -

a. The Board shall establish and issue a fuel piping
license for use by persons who do not possess the required Class I or Class II
plumbing or heating license, but desire to engage in the contracting or
installing of fuel piping extending from an approved fuel source at or near the
premises, which piping is used or may be used to supply fuel to any systems,
equipment, or appliances located inside the premises.

b. The Board shall establish and issue a limited
plumbing contractor license for use by persons who do not possess the required
Class I or Class II plumbing license but desire to engage in the contracting or
installation, repair, or replacement of either of the following:

1. Exterior potable water service lines or backflow
preventers serving irrigation systems or domestic water service systems of two
inch diameter or smaller.

2. Exterior building sewer or water service piping of
two inch diameter or smaller.

c. The Board shall establish and issue:

1. A State and local government plumbing, heating
group number one, heating group number two, or heating group number three
technician license for use by persons who do not possess the required plumbing,
heating group number one, heating group number two, or heating group number
three contractor license but desire to engage in the installation, repair, or
replacement of plumbing, heating group number one, heating group number two, or
heating group number three solely as an employee of a State or local government
agency.

2. A State and local government plumbing, heating
group number one, heating group number two, or heating group number three
technician license for use by persons who do possess the required plumbing, heating
group number one, heating group number two, or heating group number three
contractor license but also desire to engage in the installation, repair, or
replacement of plumbing, heating group number one, heating group number two, or
heating group number three as an employee of a State or local government agency
without listing their contractor license in the name of the State or local
government agency. Licensed contractors who obtain the State and local
government technician license shall be allowed to contract and perform work
under their contractor license only during hours such contractor is not
actively employed with the State or local government as a technician, and is on-site
carrying out the contracting activity personally. No work can be performed by
the State or local government agency in reliance upon the technician license
when the licensee is not present.

d. The Board may also establish additional restricted
classifications to provide for:

1. The licensing of any person, partnership, firm, or corporation
desiring to engage in a specific phase of heating, plumbing, or fire sprinkling
contracting.

2. The licensing of any person, partnership, firm, or
corporation desiring to engage in a specific phase of heating, plumbing, or
fire sprinkling contracting that is an incidental part of their primary
business, which is a lawful business other than heating, plumbing, or fire
sprinkling contracting.

3. The licensing of any person desiring to engage in
contracting and installing fuel piping from an approved fuel source on the
premises to a point inside the residence.

(c) To Whom Article Applies. - The provisions of this
Article shall apply to all persons, firms, or corporations who engage in, or
attempt to engage in, the business of plumbing, heating, or fire sprinkler
contracting, or any combination thereof as defined in this Article. The
provisions of this Article shall not apply to those who make minor repairs or
minor replacements to an already installed system of plumbing, heating or air
conditioning, but shall apply to those who make repairs, replacements, or
modifications to an already installed fire sprinkler system. Minor repairs or
minor replacements within the meaning of this subsection shall include the
replacement of parts in an installed system which do not require any change in
energy source, fuel type, or routing or sizing of venting or piping. Parts
shall include a compressor, coil, contactor, motor, or capacitor.

(c1) Exemption. - The provisions of this Article shall
not apply to a person who performs the on-site assembly of a factory designed
drain line system for a manufactured home, as defined in G.S. 143-143.9(6),
if the person (i) is a licensed manufactured home retailer, a licensed
manufactured home set-up contractor, or a full-time employee of either, (ii)
obtains an inspection by the local inspections department and (iii) performs
the assembly according to the State Plumbing Code.

(c2) Exemption. - The provisions of this Article shall
not apply to electric generating facilities that are subject to G.S. 62-110.1
or that provide power sold at wholesale that is regulated by the Federal Energy
Regulatory Commission.

(d) Repealed by Session Laws 1979, c. 834, s. 7.

(d1) Expired December 31, 1991.

(e) Posting License; License Number on Contracts, etc.
- The current license issued in accordance with the provisions of this Article
shall be posted in the business location of the licensee, and its number shall
appear on all proposals or contracts and requests for permits issued by
municipalities. The initial qualified licensee on a license is the permanent
possessor of the license number under which that license is issued, except that
a licensee, or the licensee's legal agent, personal representative, heirs or
assigns, may designate in writing to the Board a qualified licensee to whom the
Board shall assign the license number upon the payment of a ten dollar ($10.00)
assignment fee. Upon such assignment, the qualified licensee becomes the
permanent possessor of the assigned license number. Notwithstanding the
foregoing, the license number may be assigned only to a qualified licensee who
has been employed by the initial licensee's plumbing and heating company for at
least 10 years or is a lineal relative, sibling, first cousin, nephew, niece,
daughter-in-law, son-in-law, brother-in-law, or sister-in-law of the initial
licensee. Each successive licensee to whom a license number is assigned under
this subsection may assign the license number in the same manner as provided in
this subsection.

(f) Repealed by Session Laws 1971, c. 768, s. 4.

(g) The Board may, in its discretion, grant to
plumbing, heating, or fire sprinkler contractors licensed by other states
license of the same or equivalent classification without written examination
upon receipt of satisfactory proof that the qualifications of such applicants
are substantially equivalent to the qualifications of holders of similar
licenses in North Carolina and upon payment of the usual license fee.

(h) Expired December 31, 1993.

(i) The provisions of this Article shall not apply to
a retailer, as defined in G.S. 105-164.3(35), who, in the ordinary course
of business, enters into a transaction with a buyer in which the retailer of a
water heater sold for installation in a one- or two-family residential dwelling
contracts with a licensee under this Article to provide the installation
services for the water heater if the retail sales and installation contract
with the buyer is signed by the buyer, the retailer, and the licensee and bears
the licensee's license number and telephone number. All installation services
rendered by the licensee in connection with any such contract must be performed
in compliance with all building code, permit, and inspection requirements.

(j) The provisions of this Article shall not apply to
a person primarily engaged in the retail sale of goods and services who
contracts for or arranges financing for the sale and installation of a single-family
residential heating or cooling system for which a license to install such
system is required under this Article, provided all of the following
requirements are met:

(1) No contract or proposal for sale or installation
may be presented to or signed by the buyer unless either (i) the specifications
for and design of the system have been first reviewed and approved by an
employee of the retail seller who is licensed under this Article or (ii) the
specifications for and design of the system have been first reviewed and
approved by the person licensed under this Article who will install the system,
if the installer is not an employee of the retail seller. This subdivision does
not prohibit the retailer from providing a written estimate to a potential
buyer so long as no contract or proposal for contract is presented or signed
prior to the review and approval required by this subsection.

(2) The person installing the system is licensed under
this Article.

(3) The contract for sale and for installation is
signed by the buyer, by an authorized representative of the retail seller, and
by the licensed contractor and contains the contractor's name, license number,
and telephone number and the license number of the person approving the system
design specifications.

(4) Installation services are performed in compliance
with all applicable building codes, manufacturer's installation instructions,
and permit and inspection requirements.

(5) The retailer provides, in addition to any other
warranties it may offer with respect to the system itself, a warranty for a
period of at least one year for any defects in installation.

(k) The provisions of subsections (i) and (j) of this
section shall not apply to a system meeting the definition of subdivision
(a)(11) of this section.

(l) The provisions of this Article do not
apply to any of the following persons to the extent the person does not claim
to be a plumbing or heating contractor or is not acting in the capacity of a
plumbing or heating contractor in the course of the person's duties:

(1) A home inspector licensed under Article 9F of
Chapter 143 of the General Statutes.

(2) A certified Code-enforcement official licensed
under Article 9C of Chapter 143 of the General Statutes.

All persons, firms, or corporations engaged in the business
of either plumbing or heating contracting, or both, shall pay an annual license
fee not to exceed one hundred fifty dollars ($150.00). The annual fee for a
piping or restricted classification license shall not exceed that for a
plumbing or heating license. All persons, firms, or corporations engaged in the
business of fire sprinkler contracting shall pay an initial application fee not
to exceed seventy-five dollars ($75.00) and an annual license fee not to exceed
three hundred dollars ($300.00). In the event the Board refuses to license an
applicant, the license fee deposited shall be returned by the Board to the
applicant. All licenses shall expire on the last day of December in each year
following their issuance or renewal. Persons who obtain a license by passing an
examination on or after October 1 of any year may receive a license for the
remainder of the year by paying one-half of the usual license fee for that
classification of license. It shall be the duty of the secretary and treasurer
to send by United States mail or e-mail to every licensee registered with the
Board, notice to the licensee's last known address reflected on the records of
the Board of the amount of fee required for renewal of license, the notice to
be mailed at least one month in advance of the expiration of the license. The
Board may require payment of all unpaid annual fees before reissuing a license.
In the event of failure on the part of any person, firm or corporation to renew
the license certificate annually and pay the required fee during the month of
January in each year, the Board shall increase the license fee by twenty-five
dollars ($25.00) to cover any additional expense associated with late renewal.
The Board shall require reexamination upon failure of a licensee to renew
license within three years after expiration. The Board may adopt regulations
requiring attendance at programs of continuing education as a condition of
license renewal. A licensee employed full time as a local government plumbing,
heating, or mechanical inspector and holding qualifications from the Code Officials
Qualifications Board may renew the license at a fee not to exceed twenty-five
dollars ($25.00). (1931, c. 52, s. 7; 1939, c. 224, s.
4; 1971, c. 768, s. 5; 1979, c. 834, s. 8; 1981, c. 332, s. 2; 1989, c. 623, s.
2; 1989 (Reg. Sess., 1990), c. 842, s. 4; 1997-382, s. 2; 2001-270, s. 3; 2005-131,
s. 2.)

The Board shall charge a nonrefundable application and
examination fee not to exceed one hundred fifty dollars ($150.00) for each
examination or any part of an examination, and the funds collected shall be
disbursed upon warrant of the chairman and secretary-treasurer, to partially
defray general expenses of the Board. The application and examination fee shall
be retained by the Board whether or not the applicant is granted a license.
Until changed by the Board pursuant to rules adopted by the Board, the fee for
each examination or any part taken on a particular day shall be one hundred
dollars ($100.00). (1959, c. 865, s. 2; 1989, c. 623,
s. 3; 2001-270, s. 4; 2005-131, s. 3.)

§ 87-22.2. Licensing of nonresidents.

(a) Definitions. - The following definitions apply in
this section:

(1) Delinquent income tax debt. - The amount of income
tax due as stated in a final notice of assessment issued to a taxpayer by the
Secretary of Revenue when the taxpayer no longer has the right to contest the
amount.

(4) Foreign limited liability company. - Has the same
meaning as the term "foreign LLC" in G.S. 57D-1-03.

(5) Foreign partnership. - Either of the following that
does not have a permanent place of business in this State:

a. A foreign limited partnership as defined in G.S. 59-102.

b. A general partnership formed under the laws of a
jurisdiction other than this State.

(b) Licensing. - The Board shall not issue a license
for a foreign corporation unless the corporation has obtained a certificate of
authority from the Secretary of State pursuant to Article 15 of Chapter 55 of
the General Statutes. The Board shall not issue a license for a foreign limited
liability company unless the company has obtained a certificate of authority
from the Secretary of State pursuant to Article 7 of Chapter 57D of the General
Statutes.

(c) Information. - Upon request, the Board shall
provide the Secretary of Revenue on an annual basis the name, address, and tax
identification number of every nonresident individual and foreign entity
licensed by the Board. The information shall be provided in the format required
by the Secretary of Revenue.

(d) Delinquents. - If the Secretary of Revenue
determines that any nonresident individual or foreign corporation licensed by
the Board, a member of any foreign limited liability company licensed by the
Board, or a partner in any foreign partnership licensed by the Board, owes a
delinquent income tax debt, the Secretary of Revenue may notify the Board of
these nonresident individuals and foreign entities and instruct the Board not
to renew their licenses. The Board shall not renew the license of such a
nonresident individual or foreign entity identified by the Secretary of Revenue
unless the Board receives a written statement from the Secretary that the debt
either has been paid or is being paid pursuant to an installment agreement. (1998-162, ss. 5, 11; 2013-157, s. 21.)

§ 87-23. Revocation or suspension of license for cause.

(a) The Board shall have power to revoke or suspend
the license of or order the reprimand or probation of any plumbing, heating, or
fire sprinkler contractor, or any combination thereof, who is guilty of any
fraud or deceit in obtaining or renewing a license, or who fails to comply with
any provision or requirement of this Article, or the rules adopted by the
Board, or for gross negligence, incompetency, or misconduct, in the practice of
or in carrying on the business of a plumbing, heating, or fire sprinkler contractor,
or any combination thereof, as defined in this Article. Any person may prefer
charges of such fraud, deceit, gross negligence, incompetency, misconduct, or
failure to comply with any provision or requirement of this Article, or the
rules of the Board, against any plumbing, heating, or fire sprinkler
contractor, or any combination thereof, who is licensed under the provisions of
this Article. All of the charges shall be in writing and investigated by the
Board. Any proceedings on the charges shall be carried out by the Board in
accordance with the provisions of Chapter 150B of the General Statutes.

(b) The Board shall adopt and publish guidelines,
consistent with the provisions of this Chapter, governing the suspension and
revocation of licenses.

The Board may in its discretion reissue license to any
person, firm or corporation whose license may have been revoked: Provided, four
or more members of the Board vote in favor of such reissuance for reasons
deemed sufficient by the Board. A new certificate of registration to replace
any license which may be lost or destroyed may be issued subject to the rules
and regulations of the Board. (1931, c. 52, s. 9; 1989
(Reg. Sess., 1990), c. 842, s. 6.)

Any person, firm or corporation who shall engage in or offer
to engage in, or carry on the business of plumbing, heating, or fire sprinkler
contracting, or any combination thereof, as defined in G.S. 87-21, without
first having been licensed to engage in such business, or businesses, as
required by the provisions of this Article; or any person, firm or corporation
holding a limited plumbing or heating license under the provisions of this
Article who shall practice or offer to practice or carry on any type of
plumbing or heating contracting not authorized by said limited license; or any
person, firm or corporation who shall give false or forged evidence of any kind
to the Board, or any member thereof, in obtaining a license, or who shall
falsely impersonate any other practitioner of like or different name, or who
shall use an expired or revoked license, or who shall violate any of the
provisions of this Article, shall be guilty of a Class 2 misdemeanor. An
employee in the course of his work as a bona fide employee of a licensee of the
Board shall not be construed to have engaged in the business of plumbing,
heating, or fire sprinkler contracting, as the case may be. (1931, c. 52, s. 10; 1939, c. 224, s. 6; 1989, c. 623, s. 4;
1989 (Reg. Sess., 1990), c. 842, s. 7; 1993, c. 539, s. 604; 1994, Ex. Sess.,
c. 24, s. 14(c).)

§ 87-25.1. Board may seek injunctive relief.

Whenever it appears to the Board that any person, firm or
corporation is violating any of the provisions of this Article or of the rules
and regulations of the Board promulgated under this Article, the Board may
apply to the superior court for a restraining order and injunction to restrain
the violation; and the superior courts have jurisdiction to grant the requested
relief, irrespective of whether or not criminal prosecution has been instituted
or administrative sanctions imposed by reason of the violation. The court may
award the Board its reasonable costs associated with the investigation and
prosecution of the violation. (1979, c. 834, s. 11;
2013-332, s. 2.)

(a) A license may be issued in the name of a
corporation, provided, one or more officers, or full time employee or
employees, or both, empowered to act for the corporation, are licensed in
accordance with the provisions of this Article; and provided such officers or
employee or employees shall execute contracts to the extent of their license
qualifications in the name of the said corporation and exercise general supervision
over the work done thereunder.

(b) A license may be issued in the name of a
partnership provided one or more general partners, or full time employee or
employees empowered to act for the partnership, are licensed in accordance with
the provisions of this Article, and provided such general partners or employee
or employees shall execute contracts to the extent of their license
qualifications in the name of the said partnership, and exercise general
supervision over the work done thereunder.

(c) A license may be issued in an assumed or
designated trade name, provided the owner of the business conducted thereunder,
or full time employee or employees empowered to act for the owner, are licensed
in accordance with the provisions of this Article; and such owner or employee
or employees shall execute contracts to the extent of their license
qualifications, in the said trade name, and exercise general supervision over
the work done thereunder.

(d) A certificate of license may be issued in
accordance with the provisions of this Article upon payment of the annual
license fee by such corporation, partnership, or owner of the business
conducted under an assumed or designated trade name, as the case may be, and
the names and qualifications of individual licensee or licensees connected
therewith shall be indicated on the aforesaid license.

(e) It shall be necessary that persons licensed in
accordance with the provisions of this section shall exercise general
supervision over contracts to completion.

(f) Nothing in this section shall be deemed to limit
the ability of a licensee under this Article who is regularly employed by a
local board of education to maintain an individual license or to contract or
perform work during the hours the licensee is off-duty from the regular
employer. (1931, c. 52, s. 12; 1939, c. 224, s. 8;
1957, c. 815; 1967, c. 770, s. 7; 2016-105, s. 3.)

§ 87-27. License fees payable in advance; application of.

All license fees shall be paid in advance to the secretary
and treasurer of the Board and by him held as a fund for the use of the Board.
The compensation and expenses of the members of the Board as herein provided,
the salaries of its employees, the costs of continuing educational programs for
licensees and applicants, and all expenses incurred in the discharge of its
duties under this Article shall be paid out of such fund, upon the warrant of
the chairman and secretary and treasurer. (1931, c.
52, s. 13; 1933, c. 57; 1939, c. 224, s. 9; 1953, c. 254, s. 3; 1959, c. 865,
s. 1; 1979, c. 834, s. 10.)

§ 87-27.1. Public awareness program.

The Board shall establish and implement a public awareness
program to inform the general public of the purpose and function of the Board. (1979, c. 834, s. 11.)

(a) The State Board of Examiners of Electrical
Contractors shall continue as the State agency responsible for the licensing of
persons engaging in electrical contracting within this State, and shall consist
of one member from the North Carolina Department of Insurance to be designated
by the Commissioner of Insurance; one member who has satisfied the requirements
for an unlimited license as defined in G.S. 87-43.3 and who is a representative
of the North Carolina Association of Electrical Contractors to be designated by
the governing body of that organization; and five members to be appointed by
the Governor: one from the faculty of The Greater University of North Carolina
who teaches or does research in the field of electrical engineering, one who is
serving as a chief electrical inspector of a municipality or county in North
Carolina, one who has satisfied the requirements for an unlimited license as
defined in G.S. 87-43.3 and who is a representative of the Carolinas Electrical
Contractors Association operating a sole proprietorship, partnership or
corporation located in North Carolina which is actively engaged in the business
of electrical contracting, and two who have no ties with the construction
industry and who represent the interest of the public at large.

(b) Members of the Board shall serve staggered seven-year
terms. Each member shall serve until his or her successor is designated or
appointed, and is duly qualified. Vacancies occurring during a term shall be
filled for the remainder of that term by the authority that designated or
appointed the departing member.

(c) Members of the Board shall not serve consecutive,
complete terms. For purposes of this subsection, only a term of less than seven
years that results from the filling of a vacancy is an incomplete term; a term
of less than seven years that results from the successor's late designation or
appointment is not an incomplete term.

(d) All members shall be residents of North Carolina
during their tenure on the Board. Any member of the Board may be removed by the
authority that designated or appointed that member for misconduct,
incompetency, or neglect of duty.

(e) The Board shall hold regular meetings quarterly
and may hold meetings on call of the chair. The chair shall be required to call
a special meeting upon written request by two members of the Board. At its
regular first quarter meeting, the Board shall elect from its membership a
chair and a vice-chair, each to serve for one year. Four members of the Board
shall constitute a quorum. The principal office of the Board shall be at such
place as shall be designated by a majority of the members thereof. Payment of compensation
and reimbursement of expenses of Board members shall be governed by G.S. 93B-5.

(f) Before entering upon the performance of his or her
duties hereunder, each member of the Board shall take and file with the
Secretary of State an oath in writing to properly perform the duties of his or
her office as a member of the Board, and to uphold the Constitution of North
Carolina and the Constitution of the United States. (1937,
c. 87, s. 1; 1969, c. 669, s. 1; 1979, c. 904, ss. 1-3; 1989, c. 709, s. 1;
1995, c. 114, s. 1.)

§ 87-40. Secretary-treasurer.

At its regular first quarter meeting, the Board shall appoint
a secretary-treasurer to serve for one year. The secretary-treasurer need not
be a member of the Board, and the Board is authorized to employ a full-time
secretary-treasurer and such other assistants and to make such other
expenditures as may be necessary to the proper performance of the duties of the
Board under this Article. The compensation and the duties of the secretary-treasurer
shall be fixed by the Board, and the secretary-treasurer shall give bond in
such sum and form as the Board shall require for the faithful performance of
duty. The secretary-treasurer shall keep a record of the proceedings of said
Board and shall receive and account for all moneys derived from the operations
of the Board under this Article. (1937, c. 87, ss. 2,
3; 1969, c. 669, s. 1; 1995, c. 114, s. 2.)

§ 87-41. Seal of Board.

The Board shall adopt a seal for its own use, and the
secretary-treasurer shall have charge and custody thereof. The seal shall have
inscribed thereon the words "Board of Examiners of Electrical Contractors,
State of North Carolina." (1937, c. 87, s. 3;
1969, c. 669, s. 1.)

§ 87-41.1. Definitions.

As used in this Article, unless the context requires
otherwise:

(1) A "qualified individual" is an individual
who is qualified in a specific license classification as a result of having
taken and passed the qualifying examination required by this Article for such a
classification and who has been certified as such by the Board pursuant to G.S.
87-42.

(2) A "listed qualified individual" is a
qualified individual whose name is listed on a license issued by the Board. A
listed qualified individual has the specific duty and authority to supervise
and direct electrical contracting done by or in the name of a licensee of the
Board on whose license the qualified individual is so listed.

(3) A licensee of the Board is a person listed pursuant
to subsection (2), or a partnership, firm or corporation that regularly employs
at least one listed qualified individual and which has been issued a license by
the Board. (1989, c. 709, s. 2.)

§ 87-42. Duties and powers of Board.

In order to protect the life, health and property of the
public, the State Board of Examiners of Electrical Contractors shall provide
for the written examination of all applicants for certification as a qualified
individual, as defined in G.S. 87-41.1. The Board shall receive all
applications for certification as a qualified individual and all applications
for licenses to be issued under this Article, shall examine all applicants to
determine that each has met the requirements for certification and shall
discharge all duties enumerated in this Article. Applicants for certification
as a qualified individual must be at least 18 years of age and shall be
required to demonstrate to the satisfaction of the Board their good character
and adequate technical and practical knowledge concerning the safe and proper
installation of electrical work and equipment. The examination to be given for
this purpose shall include, but not be limited to, the appropriate provisions
of the National Electrical Code as incorporated in the North Carolina State
Building Code, the analysis of electrical plans and specifications, estimating
of electrical installations, and the fundamentals of the installation of
electrical work and equipment. Certification of qualified individuals shall be
issued in the same classifications as provided in this Article for license
classifications. The Board shall prescribe the standards of knowledge,
experience and proficiency to be required of qualified individuals, which may
vary for the various license classifications. The Board shall issue
certifications and licenses to all applicants meeting the requirements of this
Article and of the Board upon the receipt of the fees prescribed by G.S. 87-44.
The Board shall have power to make rules and regulations necessary to the
performance of its duties and for the effective implementation of the
provisions of this Article. The Board shall have the power to administer oaths
and issue subpoenas requiring the attendance of persons and the production of
papers and records before the Board in any hearing, investigation, or
proceeding conducted by it. Members of the Board's staff or the sheriff or
other appropriate official of any county of this State shall serve all notices,
subpoenas, and other papers given to them by the Chairman for service in the
same manner as process issued by any court of record. Any person who neglects
or refuses to obey a subpoena issued by the Board shall be guilty of a Class 1
misdemeanor. The Board shall have the power to acquire, rent, encumber,
alienate, and otherwise deal with real property in the same manner as a private
person or corporation, subject only to approval of the Governor and the Council
of State. Collateral pledged by the Board for an encumbrance is limited to the
assets, income, and revenues of the Board. The Board shall keep minutes of all
its proceedings and shall keep an accurate record of receipts and disbursements
which shall be audited at the close of each fiscal year by a certified public
accountant, and the audit report shall be filed with the State of North
Carolina in accordance with Chapter 93B of the General Statutes. (1937, c. 87, s. 4; 1969, c. 669, s. 1; 1989, c. 709, s. 3;
1993, c. 539, s. 605; 1994, Ex. Sess., c. 24, s. 14(c); 2001-159, s. 1.)

§ 87-43. Electrical contracting defined; licenses.

Electrical contracting shall be defined as engaging or
offering to engage in the business of installing, maintaining, altering or
repairing any electric work, wiring, devices, appliances or equipment. No
person, partnership, firm or corporation shall engage, or offer to engage, in
the business of electrical contracting within the State of North Carolina
without having received a license in the applicable classification described in
G.S. 87-43.3 from the State Board of Examiners of Electrical Contractors in compliance
with the provisions of this Article, regardless of whether the offer was made
or the work was performed by a qualified individual as defined in G.S. 87-41.1.
In each separate place of business operated by an electrical contractor at
least one listed qualified individual shall be regularly on active duty and
shall have the specific duty and authority to supervise and direct all
electrical wiring or electrical installation work done or made by such separate
place of business. Every person, partnership, firm or corporation engaging in
the business of electrical contracting shall display a current certificate of
license in his principal place of business and in each branch place of business
which he operates. Licenses issued hereunder shall be signed by the chairman
and the secretary-treasurer of the Board, under the seal of the Board. A
registry of all licenses issued to electrical contractors shall be kept by the
secretary-treasurer of the Board, and said registry shall be open for public
inspection during ordinary business hours. (1937, c.
87, s. 5; 1951, c. 650, ss. 1-2 1/2; 1953, c. 595; 1961, c. 1165; 1969, c. 669,
s. 1; 1989, c. 709, s. 4.)

§ 87-43.1. Exceptions.

The provisions of this Article shall not apply:

(1) To the installation, construction or maintenance of
facilities for providing electric service to the public ahead of the point of
delivery of electric service to the customer;

(2) To the installation, construction, maintenance, or
repair of telephone, telegraph, or signal systems, by public utilities, or
their corporate affiliates, when said work pertains to the services furnished
by said public utilities;

(3) To any person in the course of his work as a bona
fide employee of a licensee of this Board;

(4) To the installation, construction or maintenance of
electrical equipment and wiring for temporary use by contractors in connection
with the work of construction;

(5) To the installation, construction, maintenance or
repair of electrical wiring, devices, appliances or equipment by persons, firms
or corporations, upon their own property when such property is not intended at
the time for rent, lease, sale or gift, who regularly employ one or more
electricians or mechanics for the purpose of installing, maintaining, altering
or repairing of electrical wiring, devices or equipment used for the conducting
of the business of said persons, firms or corporations;

(5a) To any person who is himself and for himself
installing, maintaining, altering or repairing electric work, wiring, devices,
appliances or equipment upon his own property when such property is not
intended at the time for rent, lease, or sale;

(6) To the installation, construction, maintenance or
repair of electrical wiring, devices, appliances or equipment by State
institutions and private educational institutions which maintain a private
electrical department;

(7) To the replacement of lamps and fuses and to the
installation and servicing of cord-connected appliances and equipment connected
by means of attachment plug-in devices to suitable receptacles which have been
permanently installed or to the servicing of appliances connected to a
permanently installed junction box. This exception does not apply to
permanently installed receptacles or to the installation of the junction box.

(9) To the installation, maintenance, or replacement of
any load control device or equipment by an electric power supplier, as defined
in G.S. 62-133.8, or an electrical contractor contracted by the electric power
supplier, so long as the work is subject to supervision by an electrical
contractor licensed under this Article. The electric power supplier shall
provide such installation, maintenance, or replacement in accordance with (i)
an activity or program ordered, authorized, or approved by the North Carolina
Utilities Commission pursuant to G.S. 62-133.8 or G.S. 62-133.9 or (ii) a
similar program undertaken by a municipal electric service provider, whether
the installation, modification, or replacement is made before or after the
point of delivery of electric service to the customer. The exemption under this
subdivision applies to all existing installations.

(a) A person, partnership, firm, or corporation shall
be eligible to be licensed as an electrical contractor and to have such license
renewed, subject to the provisions of this Article, provided:

(1) At least one listed qualified individual shall be
regularly employed by the applicant at each separate place of business to have
the specific duty and authority to supervise and direct electrical contracting
done by or in the name of the licensee;

(2) An application is filed with the Board which
contains a statement of ownership, states the names and official positions of
all employees who are listed qualified individuals and provides such other
information as the Board may reasonably require;

(3) The applicant, through an authorized officer or
owner, shall agree in writing to report to the Board within five days any
additions to or loss of the employment of listed qualified individuals; and

(4) The applicant furnishes, upon the initial
application for a license, a bonding ability statement completed by a bonding
company licensed to do business in North Carolina, verifying the applicant's
ability to furnish performance bonds for electrical contracting projects having
a value in excess of the project value limit for a limited license established
pursuant to G.S. 87-43.3 for the intermediate license classification and in
excess of the project value limit for an intermediate license established
pursuant to G.S. 87-43.3 for the unlimited license classification. In lieu of
furnishing the bonding ability statement, the applicant may submit for
evaluation and specific approval of the Board other information certifying the
adequacy of the applicant's financial ability to engage in projects of the
license classification applied for. The bonding ability statement or other
financial information must be submitted in the same name as the license to be
issued. If the firm for which a license application is filed is owned by a sole
proprietor, the bonding ability statement or other financial information may be
furnished in either the firm name or the name of the proprietor. However, if
the application is submitted in the name of a sole proprietor, the applicant
shall submit information verifying that the person in whose name the
application is made is in fact the sole proprietor of the firm.

(5) Repealed by Session Laws 1989, c. 709, s. 5.

(b) A license shall indicate the names and
classifications of all listed qualified individuals employed by the applicant.
A license shall be cancelled if at any time no listed qualified individual is
regularly employed by the applicant; provided, that work begun prior to such
cancellation may be completed under such conditions as the Board shall direct;
and provided further that no work for which a license is required under this
Article may be bid for, contracted for or initiated subsequent to such
cancellation until said license is reinstated by the Board. (1937, c. 87, s. 5; 1951, c. 650, ss. 1-2½; 1953, c. 595;
1961, c. 1165; 1969, c. 669, s. 1; 1989, c. 709, s. 5; 1995, c. 509, s.
135.2(e); 2007-247, s. 2.)

§ 87-43.3. Classification of licenses.

An electrical contracting license shall be issued in one of
the following classifications: Limited, under which a licensee shall be
permitted to engage in a single electrical contracting project of a value, as
established by the Board, not in excess of one hundred thousand dollars
($100,000) and on which the equipment or installation in the contract is rated
at not more than 600 volts; Intermediate, under which a licensee shall be
permitted to engage in a single electrical contracting project of a value, as
established by the Board, not in excess of two hundred thousand dollars
($200,000); Unlimited, under which a licensee shall be permitted to engage in
any electrical contracting project regardless of value; and such other special
Restricted classifications as the Board may establish from time to time to
provide, (i) for the licensing of persons, partnerships, firms or corporations
wishing to engage in special restricted electrical contracting, under which
license a licensee shall be permitted to engage only in a specific phase of
electrical contracting of a special, limited nature, and (ii) for the licensing
of persons, partnerships, firms or corporations wishing to engage in electrical
contracting work as an incidental part of their primary business, which is a
lawful business other than electrical contracting, under which license a
licensee shall be permitted to engage only in a specific phase of electrical
contracting of a special, limited nature directly in connection with said
primary business. The Board may establish appropriate standards for each
classification, such standards not to be inconsistent with the provisions of
G.S. 87-42. The Board may, by rule, modify the project value limitations up to
the maximum amounts set forth in this section for limited and intermediate
licenses no more than once every three years based upon an increase or decrease
in the project cost index for electrical projects in this State. (1969, c. 669, s. 1; 1973, c. 1228, s. 1; 1975, c. 29; 1989,
c. 709, s. 6; 1995, c. 114, s. 6; 2007-247, s. 1.)

§ 87-43.4. Residential dwelling license.

There is hereby created a separate license for electrical
contractors which shall permit an electrical contractor to engage in electrical
contracting projects pertaining to single-family detached residential
dwellings. The value of a single project pertaining to a single-family detached
residential dwelling shall not be in excess of the maximum value, established
in G.S. 87-43.3, of a single project engaged in by a licensee with a license
classified as limited. The Board shall establish appropriate standards for this
new license. The standards of knowledge, experience and proficiency shall be
those appropriate for that license. (1973, c. 1343;
1995, c. 114, s. 3.)

§ 87-44. Fees; license term.

The Board shall collect a fee from each applicant before
granting or renewing a license under the provisions of this Article; the annual
license fee for the limited classification shall not exceed one hundred dollars
($100.00) for each principal and each branch place of business; the annual
license fee for the intermediate classification shall not exceed one hundred
fifty dollars ($150.00) for each principal and each branch place of business;
the annual license fee for the unlimited classification shall not exceed two
hundred dollars ($200.00) for each principal and each branch place of business;
and the annual license fee for the special restricted classifications and for
the single-family detached residential dwelling license shall not exceed one
hundred dollars ($100.00) for each principal and each branch place of business.

The Board shall establish a system for the renewal of
licenses with varying expiration dates. However, all licenses issued by the
Board shall expire one year after the date of issuance. Licenses shall be
renewed by the Board, subject to G.S. 87-44.1 and G.S. 87-47, after
receipt and evaluation of a renewal application from a licensee and the payment
of the required fee. The application shall be upon a form provided by the Board
and shall require such information as the Board may prescribe. Renewal
applications and fees shall be due 30 days prior to the license expiration
date.

Upon failure to renew by the expiration date established by
the Board, the license shall be automatically revoked. This license may be
reinstated by the Board, subject to G.S. 87-44.1 and G.S. 87-47, upon payment
of the license fee, an administrative fee of twenty-five dollars ($25.00), and
all fees for the lapsed period during which the person, partnership, firm or
corporation engaged in electrical contracting, and, further, upon the
satisfaction of such experience requirements during the lapse as the Board may
prescribe by rule.

Beginning July 1, 1991, the Board may require as prerequisite
to the annual renewal of a license that every listed qualified individual
complete continuing education courses in subjects relating to electrical
contracting to assure the safe and proper installation of electrical work and
equipment in order to protect the life, health, and property of the public. The
listed qualified individual shall complete, during the 12 months immediately
preceding license renewal, a specific number of hours of continuing education
courses approved by the Board prior to enrollment. The Board shall not require
more than 10 hours of continuing education courses per 12 months and such
continuing education courses shall include those taught at a community college
as approved by the Board. The listed qualified individual may accumulate and
carry forward not more than two additional years of the annual continuing
education requirement. Attendance at any course or courses of continuing
education shall be certified to the Board on a form provided by the Board and
shall be submitted at the time the licensee makes application to the Board for
its license renewal and payment of its license renewal fee. This continuing
education requirement may be waived by the Board in cases of certified illness
or undue hardship as provided for in the Rules of the Board. (1989, c. 709, s. 8.)

§ 87-44.2. Licensing of nonresidents.

(a) Definitions. - The following definitions apply in
this section:

(1) Delinquent income tax debt. - The amount of income
tax due as stated in a final notice of assessment issued to a taxpayer by the
Secretary of Revenue when the taxpayer no longer has the right to contest the
amount.

(4) Foreign limited liability company. - Has the same
meaning as the term "foreign LLC" in G.S. 57D-1-03.

(5) Foreign partnership. - Either of the following that
does not have a permanent place of business in this State:

a. A foreign limited partnership as defined in G.S. 59-102.

b. A general partnership formed under the laws of a
jurisdiction other than this State.

(b) Licensing. - The Board shall not issue a license
for a foreign corporation unless the corporation has obtained a certificate of
authority from the Secretary of State pursuant to Article 15 of Chapter 55 of
the General Statutes. The Board shall not issue a license for a foreign limited
liability company unless the company has obtained a certificate of authority
from the Secretary of State pursuant to Article 7 of Chapter 57D of the General
Statutes.

(c) Information. - Upon request, the Board shall
provide the Secretary of Revenue on an annual basis the name, address, and tax
identification number of every nonresident individual and every foreign entity
licensed by the Board. The information shall be provided in the format required
by the Secretary of Revenue.

(d) Delinquents. - If the Secretary of Revenue
determines that any nonresident individual or foreign corporation licensed by
the Board, a member of any foreign limited liability company licensed by the
Board, or a partner in any foreign partnership licensed by the Board, owes a
delinquent income tax debt, the Secretary of Revenue may notify the Board of
these nonresident individuals and foreign entities and instruct the Board not
to renew their licenses. The Board shall not renew the license of such a
nonresident individual or foreign entity identified by the Secretary of Revenue
unless the Board receives a written statement from the Secretary that the debt
either has been paid or is being paid pursuant to an installment agreement. (1998-162, ss. 6, 12; 2013-157, s. 22.)

§ 87-45. Funds.

The fees collected for examinations and licenses under this
Article shall be used for the expenses of the State Board of Examiners of
Electrical Contractors in carrying out the provisions of this Article. No
expenses of the Board or compensation of any member or employee of the Board
shall be payable out of the treasury of the State of North Carolina; and
neither the Board nor any member or employee thereof shall have any power or
authority to make or incur any expense, debt or other financial obligation binding
upon the State of North Carolina. Any funds remaining in the hands of the
secretary-treasurer to the credit of the Board after all expenses of the Board
for the current fiscal year have been fully provided for shall be paid over to
the North Carolina Engineering Foundation, Inc., for the benefit of the
electrical engineering department of the Greater University of North Carolina.
Provided, however, the Board shall have the right to maintain an amount, the
cumulative total of which shall not exceed twenty percent (20%) of gross
receipts for the previous fiscal year of its operation as a maximum contingency
or emergency fund. (1937, c. 87, ss. 3, 7; 1969, c.
669, s. 1.)

§ 87-46. Responsibility of licensee; nonliability of Board.

Nothing in this Article shall relieve the holder or holders
of licenses issued under the provisions hereof from complying with the building
or electrical codes or statutes or ordinances of the State of North Carolina,
or of any county or municipality thereof now in force or hereafter enacted.
Nothing in this Article shall be construed as relieving the holder of any
license issued hereunder from responsibility or liability for negligent acts on
the part of such holder in connection with electrical contracting work; nor
shall the State Board of Examiners of Electrical Contractors be accountable in
damages, or otherwise for the negligent act or acts of any holder of such
license. (1937, c. 87, s. 12; 1969, c. 669, s. 1.)

§ 87-47. Penalties imposed by Board; enforcement procedures.

(a) Repealed by Session Laws 1989, c. 709, s. 9.

(a1) The following activities are prohibited:

(1) Offering to engage or engaging in electrical
contracting without being licensed.

(2) Selling, transferring, or assigning a license,
regardless of whether for a fee.

(3) Aiding or abetting an unlicensed person,
partnership, firm, or corporation to offer to engage or to engage in electrical
contracting.

(4) Being convicted of a crime involving fraud or moral
turpitude.

(5) Engaging in fraud or misrepresentation to obtain a
certification, obtain or renew a license, or practice electrical contracting.

(a2) The Board may administer one or more of the
following penalties if the applicant, licensee, or qualified individual has
engaged in any activity prohibited under subsection (a1) of this section:

(1) Reprimand.

(2) Suspension from practice for a period not to exceed
12 months.

(3) Revocation of the right to serve as a listed
qualified individual on any license issued by the Board.

(4) Revocation of license.

(5) Probationary revocation of license or the right to
serve as a listed qualified individual on any license issued by the Board, upon
conditions set by the Board as the case warrants, and revocation upon failure
to comply with the conditions.

(6) Revocation of certification.

(7) Refusal to certify an applicant or a qualified
individual.

(8) Refusal to issue a license to an applicant.

(9) Refusal to renew a license.

(a3) In addition to administering a penalty under
subsection (a2) of this section, the Board may assess a civil penalty of not
more than one thousand dollars ($1,000) against a licensee or a qualified
individual who has engaged in an activity prohibited under subsection (a1) of
this section or has violated another provision of this Article or a rule
adopted by the Board. The clear proceeds of civil penalties collected under
this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in
accordance with G.S. 115C-457.2.

In determining the amount of a civil penalty, the Board shall
consider:

(1) The degree and extent of harm to the public safety
or to property, or the potential for harm.

(2) The duration and gravity of the violation.

(3) Whether the violation was committed willfully or
intentionally, or reflects a continuing pattern.

(4) Whether the violation involved elements of fraud or
deception either to the public or to the Board, or both.

(5) The violator's prior disciplinary record with the
Board.

(6) Whether and the extent to which the violator
profited by the violation.

(a4) Any person, including the Board and its staff on
their own initiative, may prefer charges pursuant to this section, and such
charges must be submitted in writing to the Board. The Board may, without a
hearing, dismiss charges as unfounded or trivial. The Board may issue a notice
of violation based on the charges, to be served by a member of the Board's
staff or in accordance with Rule 4 of the Rules of Civil Procedure, against any
person, partnership, firm, or corporation for engaging in an activity
prohibited under subsection (a1) of this section or for a violation of the
provisions of this Article or any rule adopted by the Board. The person or
other entity to whom the notice of violation is issued may request a hearing by
notifying the Board in writing within 20 days after being served with the
notice of violation. Hearings shall be conducted by the Board or an
administrative law judge pursuant to Article 3A of Chapter 150B of the General
Statutes. In conducting hearings, the Board may remove the hearings to any
county in which the offense, or any part thereof, was committed if in the
opinion of the Board the ends of justice or the convenience of witnesses
require such removal.

(a5) If the person or other entity does not request a
hearing under subsection (a4) of this section, the Board shall enter a final decision
and may impose penalties against the person or other entity. If the person or
other entity is not a licensee or a qualified individual, the Board may impose
penalties under subsection (a2) of this section. If the person or other entity
is a licensee or a qualified individual, the Board may impose penalties under
subsection (a2) of this section, subsection (a3) of this section, or both.

(b) The Board shall adopt and publish rules, in
accordance with Chapter 150B of the General Statutes and consistent with the
provisions of this Article, governing the matters contained in this section.

(c) The Board shall establish and maintain a system
whereby detailed records are kept regarding charges and notices of violation
pursuant to this section. This record shall include, for each person,
partnership, firm, and corporation charged or notified of a violation, the date
and nature of each charge or notice of violation, investigatory action taken by
the Board, any findings by the Board, and the disposition of the matter.

(d) The Board may reinstate a qualified individual's
certification and may reinstate a license after having revoked it, provided
that one year has elapsed from revocation until reinstatement and that the vote
of the Board for reinstatement is by a majority of its members.

The Board shall immediately notify the Secretary of State and
the electrical inspectors within the licensee's county of residence upon the
revocation of a license or the reissuance of a license which had been revoked.

(e) In any case in which the Board is entitled to
convene a hearing to consider imposing any penalty provided for in subsection
(a2) or (a3) of this section, the Board may accept an offer in compromise of
the charge, whereby the accused shall pay to the Board a penalty of not more
than one thousand dollars ($1,000). The clear proceeds of penalties collected
by the Board under this subsection shall be remitted to the Civil Penalty and
Forfeiture Fund in accordance with G.S. 115C-457.2. (1969,
c. 669, s. 1; 1973, c. 1331, s. 3; 1979, c. 904, s. 11; 1989, c. 709, s. 9;
1995, c. 114, s. 4; 1998-215, s. 132.)

§ 87-48. Penalty for violation of Article; powers of Board
to enjoin violation.

(a) Any person, partnership, firm or corporation who
shall violate any of the provisions of this Article or any rule of the Board
adopted pursuant to this Article or who shall engage or offer to engage in the
business of installing, maintaining, altering or repairing within the State of
North Carolina any electric wiring, devices, appliances or equipment without
first having obtained a license under the provisions of this Article shall be
guilty of a Class 2 misdemeanor.

(b) Whenever it shall appear to the State Board of
Examiners of Electrical Contractors that any person, partnership, firm or corporation
has violated, is violating, or threatens to violate any provisions of this
Article, the Board may apply to the courts of the State for a restraining order
and injunction to restrain such practices. If upon such application the court
finds that any provision of this Article is being violated, or a violation
thereof is threatened, the court shall issue an order restraining and enjoining
such violations, and such relief may be granted regardless of whether criminal
prosecution is instituted under the provisions of this Article. The venue for
actions brought under this subsection shall be the superior court of any county
in which such acts are alleged to have been committed or in the county where
the defendants in such action reside. (1937, c. 87, s.
13; 1969, c. 669, s. 1; 1979, c. 904, s. 14; 1989, c. 709, s. 10; 1993, c. 539,
s. 606; 1994, Ex. Sess., c. 24, s. 14(c).)

§ 87-49. No examination required of licensed contractors.

Any person, firm or corporation licensed in this State as a
Class II electrical contractor on the effective date of this Article shall be
entitled to be licensed, without examination, in the limited classification
upon payment of the required fee and may be licensed in the intermediate or in
the unlimited classification without written examination upon satisfactory
proof to the Board that such applicant is in fact qualified for such
classification. Any person, firm or corporation licensed in this State as a
Class I electrical contractor on the effective date of this Article shall be
entitled to be licensed without examination in the limited, intermediate or
unlimited classification upon payment of the required fee. Provided, that any
person who has been once duly licensed by the Board, whose license has expired
solely because of failure to apply for renewal, may apply and have a license
issued under the provisions of this section if within a period of 12 months
preceding such issuance the applicant shall have been primarily actively
engaged as an electrical contractor or in an occupation which in the judgment
of the Board is similar or equivalent to that of an electrical contractor. (1969, c. 669, s. 1.)

§ 87-50. Reciprocity.

To the extent that other states which provide for the
licensing of electrical contractors provide for similar action, the Board may
grant licenses of the same or equivalent classification to electrical
contractors licensed by other states without written examination upon
satisfactory proof furnished to the Board that the qualifications of such
applicants are equal to the qualifications of holders of similar licenses in
North Carolina and upon payment of the required fee. (1969,
c. 669, s. 1.)

§ 87-50.1. Public awareness program.

The Board shall establish and implement a public awareness
program to inform the general public of the purpose and function of the Board. (1979, c. 904, s. 13.)

§ 87-51. Severability of provisions.

If any provision of this Article or the application thereof
to any person or circumstances is for any reason held invalid, such invalidity
shall not affect other provisions or applications of the Article which can be
given effect without the invalid provision or application, and to this end the
provisions of this Article are declared to be severable. (1969, c. 669, s. 1.)

Article 5.

Refrigeration Contractors.

§ 87-52. State Board of Refrigeration Contractors;
appointment; term of office.

(a) For the purpose of carrying out the provisions of
this Article, the State Board of Refrigeration Contractors is created, consisting
of seven members appointed by the Governor to serve seven-year staggered terms.
The Board shall consist of:

(1) One member who is a wholesaler or a manufacturer of
refrigeration equipment.

(2) One member from an accredited engineering school
located in this State.

(3) One member from the field of public health with an
environmental science background from an accredited college or university
located in this State.

(4) Two members who are licensed refrigeration
contractors.

(5) One member who has no ties with the construction
industry to represent the interest of the public at large.

(6) One member with an engineering background in
refrigeration.

(b) The term of office of one member shall expire each
year. Vacancies occurring during a term shall be filled by appointment of the
Governor for the unexpired term. Whenever the term "Board" is used in
this Article, it means the State Board of Refrigeration Contractors. No Board
member shall serve more than one complete consecutive term. (1955, c. 912, s. 1; 1959, c. 1206, s. 2; 1973, c. 476, s.
128; 1979, c. 712, s. 1; 1995, c. 376, s. 1; 2017-10, s. 2.7(a).)

The Governor may remove any member of the Board for
misconduct, incompetency or neglect of duty. Each member of the Board shall be
a resident of this State at the time of his appointment. Payment of
compensation and reimbursement of expenses of Board members shall be governed
by G.S. 93B-5. (1955, c. 912, s. 2; 1969, c. 445, s.
9; 1979, c. 712, ss. 2, 7.)

§ 87-54. Organization meeting; officers; seal; rules.

The Board shall within 30 days after its appointment meet in
the City of Raleigh and organize, and shall elect a chairman and secretary and
treasurer, each to serve for one year. Thereafter said officer shall be elected
annually. The secretary and treasurer shall give bond approved by the Board for
the faithful performance of his duties, in such sum as the Board may, from time
to time, determine. The Board shall have a common seal, shall formulate rules
to govern its actions, and is hereby authorized to employ such personnel as it
may deem necessary to carry out the provisions of this Article. (1955, c. 912, s. 3.)

§ 87-55. Regular and special meetings; quorum.

The Board after holding its first meeting, as hereinbefore
provided, shall thereafter hold at least two regular meetings each year. Special
meetings may be held at such times and places as the bylaws and/or rules of the
Board provide; or as may be required in carrying out the provisions hereof. A
quorum of the Board shall consist of four members. (1955,
c. 912, s. 4.)

§ 87-56. Record of proceedings and register of applicants;
reports.

The Board shall keep a record of its proceedings and a
register of all applicants for examination, showing the date of each
application, the name, age and other qualifications, places of business and
residence of each applicant. The books and records of the Board shall be prima
facie evidence of the correctness of the contents thereof. On or before the
first day of March of each year the Board shall submit to the Governor a report
of its activities for the preceding year, and file with the Secretary of State
a copy of such report, together with a statement of receipts and expenditures
of the Board attested by the chairman and secretary. (1955,
c. 912, s. 5.)

In order to protect the public health, safety, morals, order
and general welfare of the people of this State, all persons, firms or
corporations, whether resident or nonresident of the State of North Carolina,
before engaging in refrigeration business or contracting, as defined in this
Article, shall first apply to the Board and shall procure a license. (1955, c. 912, s. 6.)

§ 87-58. Definitions; contractors licensed by Board;
examinations.

(a) The provisions of this Article shall not repeal
any wording, phrase, or paragraph as set forth in Article 2 of this Chapter.
The following definitions apply in this Article:

(2) Industrial refrigeration contractor. - All persons,
firms, or corporations engaged in commercial refrigeration contracting with the
use of ammonia as a refrigerant gas.

(3) Refrigeration service contractor. - All persons,
firms, or corporations engaged in the maintenance, servicing, and repairing of
refrigerating machinery, equipment, devices, and components relating thereto.

(4) Transport refrigeration contractor. - All persons,
firms, or corporations engaged in the business of installation, maintenance,
repairing, and servicing of transport refrigeration.

(a1) This Article shall not apply to any of the
following:

(1) The installation of self-contained commercial
refrigeration units equipped with an Original Equipment Manufacturer (OEM)
molded plug that does not require the opening of service valves.

(2) The installation and servicing of domestic
household self-contained refrigeration appliances equipped with an OEM molded
plug connected to suitable receptacles which have been permanently installed
and do not require the opening of service valves.

(3) Employees of persons, firms, or corporations or
persons, firms or corporations, not engaged in refrigeration contracting as
herein defined, that install, maintain and service their own refrigerating
machinery, equipment and devices.

(4) Any person, firm or corporation engaged in the
business of selling, repairing and installing any comfort cooling devices or
systems.

(5) The replacement of lamps, fuses, and door gaskets.

(b) The Board shall establish and issue the following
licenses:

(1) A Class I license shall be required for any person
engaged in the business of commercial refrigeration contracting.

(2) A Class II license shall be required for any person
engaged in the business of industrial refrigeration contracting.

(3) A Class III license shall be required for any
person engaged in the business of refrigeration service contracting.

(4) A Class IV license shall be required for any person
engaged in the business of transport refrigeration contracting.

(b1) Repealed by Session Laws 2017-10, s. 2.7(a),
effective January 1, 2018, and applicable to applications submitted and Board
membership appointments on or after that date.

(c) Any person, firm or corporation who for valuable
consideration engages in the refrigeration business or trade as herein defined
shall be deemed and held to be in the business of refrigeration contracting.

(d) In order to protect the public health, comfort and
safety, the Board shall prescribe the standard of experience to be required of
an applicant for license and shall give an examination designed to ascertain
the technical and practical knowledge of the applicant concerning the analysis
of plans and specifications, estimating cost, fundamentals of installation and
design as they pertain to refrigeration; and as a result of the examination,
the Board shall issue a certificate of license in refrigeration to applicants
who pass the required examination and a license shall be obtained in accordance
with the provisions of this Article, before any person, firm or corporation
shall engage in, or offer to engage in the business of refrigeration
contracting. The Board shall prescribe standards for all license
classifications.

Each application for examination shall be accompanied by a
check, post-office money order or cash in the amount of the annual license fee
required by this Article. Regular examinations shall be given in the Board's
office by appointment.

(e) Repealed by Session Laws 1979, c. 843, s. 1.

(f) Licenses Granted without an Examination. - Persons
who had an established place of business prior to July 1, 1979, and who produce
satisfactory evidence that they are engaged in the refrigeration business as
herein defined in any city, town or other area in which Article 5 of Chapter 87
of the General Statutes did not previously apply shall be granted a certificate
of license, without examination, upon application to the Board and payment of
the license fee, provided completed applications shall be made prior to June
30, 1981.

(g) The current license issued in accordance with the
provisions of this Article shall be posted in the business location of the
licensee, and its number shall appear on all proposals or contracts and
requests for permits issued by municipalities.

(h) A transport refrigeration contractor having an
established place of business doing transport refrigeration contracting prior
to October 1, 1995, shall be granted a transport refrigeration contracting
specialty license, without examination, if the person produces satisfactory
evidence the person is engaged in transport refrigeration contracting, pays the
required license fee, and applies to the Board prior to January 1, 1997. The
current specialty license shall be posted in accordance with subsection (g) of
this section.

(i) Nothing in this Article shall relieve the holder
of a license issued under this section from complying with the building or
electrical codes, statutes, or ordinances of the State or of any county or
municipality or from responsibility or liability for negligent acts in
connection with refrigeration contracting work. The Board shall not be liable
in damages, or otherwise, for the negligent acts of licensees.

(j) The Board in its discretion upon application may
grant a reciprocal license to a person holding a valid, active substantially
comparable license from another jurisdiction, but only to the extent the other
jurisdiction grants reciprocal privileges to North Carolina licensees.

(a) The Board shall have power to revoke or suspend
the license of any refrigeration contractor who is guilty of any fraud or
deceit in obtaining a license, or who fails to comply with any provision or
requirement of this Article, or for gross negligence, incompetency, or
misconduct, in the practice of or in carrying on the business of a
refrigeration contractor as defined in this Article. Any person may prefer
charges of fraud, deceit, gross negligence, incompetency, misconduct, or
failure to comply with any provision or requirement of this Article, against
any refrigeration contractor who is licensed under the provisions of this
Article. All charges shall be in writing and verified by the complainant, and
shall be heard and determined by the Board in accordance with the provisions of
Chapter 150B of the General Statutes.

(b) The Board shall adopt and publish rules and
regulations, consistent with the provisions of this Article and Chapter 150B of
the General Statutes, governing the suspension and revocation of licenses.

(c) The Board shall establish and maintain a system
whereby detailed records are kept regarding complaints against each licensee.
This record shall include, for each licensee, the date and nature of each
complaint, investigatory action taken by the Board, any findings of the Board,
and the disposition of the matter.

(d) In a case in which the Board is entitled to convene
a hearing to consider a charge under this section, the Board may accept an
offer to compromise the charge, whereby the accused shall pay to the Board a
penalty not to exceed one thousand dollars ($1,000). The funds derived from the
penalty shall be remitted to the Civil Penalty and Forfeiture Fund in
accordance with G.S. 115C-457.2.

(e) All records, papers, and other documents
containing information collected and compiled by the Board, or its members or
employees, as a result of investigations, inquiries, or interviews conducted in
connection with a licensing or disciplinary matter, shall not be considered
public records within the meaning of Chapter 132 of the General Statutes. (1955, c. 912, s. 8; 1973, c. 1331, s. 3; 1979, c. 712, s. 3;
1989, c. 770, s. 14; 1995, c. 376, s. 3; 2009-333, ss. 3, 4.)

The Board may in its discretion reissue license to any
person, firm or corporation whose license was revoked if a majority of the
Board votes in favor of such reissuance for reasons deemed sufficient by the
Board. A new certificate of registration to replace any license which may be
lost or destroyed may be issued subject to the rules and regulations of the
Board. (1955, c. 912, s. 9; 1998-216, s. 3.)

Any person, firm or corporation who shall engage in or offer
to engage in, or carry on the business of refrigeration contracting as defined
in this Article, without first having been licensed to engage in the business,
or businesses, as required by the provisions of this Article; or any person,
firm or corporation holding a refrigeration license under the provisions of
this Article who shall practice or offer to practice or carry on any type of
refrigeration contracting not authorized by the license; or any person, firm or
corporation who shall give false or forged evidence of any kind to the Board,
or any member thereof, in obtaining a license, or who shall falsely impersonate
any other practitioner of like or different name, or who shall use an expired
or revoked license, or who shall violate any of the provisions of this Article,
shall be guilty of a Class 3 misdemeanor. The Board may, in its discretion, use
its funds to defray the costs and expenses, legal or otherwise, in the
prosecution of any violation of this Article. Employees, while working under
the supervision and jurisdiction of a person, firm or corporation licensed in
accordance with the provisions of this Article, shall not be construed to have
engaged in the business of refrigeration contracting. (1955,
c. 912, s. 10; 1993, c. 539, s. 607; 1994, Ex. Sess., c. 24, s. 14(c); 1995, c.
376, s. 4; 2009-333, s. 5.)

§ 87-61.1. Board may seek injunctive relief; retain counsel.

(a) Whenever it appears to the Board that any person,
firm or corporation is violating any of the provisions of this Article or of
the rules and regulations promulgated under this Article, the Board may apply
to the superior court for a restraining order and injunction to restrain the
violation; and the superior courts have jurisdiction to grant the requested
relief, irrespective of whether or not criminal prosecution has been instituted
or administrative sanctions imposed by reason of the violation.

§ 87-62. Only one person in partnership or corporation need
have license.

(a) A corporation or partnership may engage in the
business of refrigeration contracting if one or more persons connected with the
corporation or partnership is registered and licensed as herein required, and
the licensed person executes all contracts, exercises general supervision over
the work done thereunder and is responsible for compliance with all the
provisions of this Article. The Board may determine the number of businesses
and the proximity of the businesses one to another over which the licensed
person may be responsible.

(b) For purposes of this section, the licensee's
connection to the corporation or partnership shall be in the form of a written
contract that is executed prior to the corporation or partnership engaging in refrigeration
contracting.

All license fees shall be paid in advance as hereafter
provided to the secretary and treasurer of the Board and by him held as a fund
for the use of the Board. The compensation and expenses of the members of the
Board as herein provided, the salaries of its employees, and all expenses
incurred in the discharge of its duties under this Article shall be paid out of
such fund, upon the warrant of the chairman and secretary and treasurer:
Provided, upon the payment of the necessary expenses of the Board as herein set
out, and the retention by it of twenty-five per centum (25%) of the balance of
funds collected hereunder the residue, if any, shall be paid to the State
Treasurer. (1955, c. 912, s. 12.)

(a) The Board shall have the power to acquire, hold,
rent, encumber, alienate, and otherwise deal with real property in the same
manner as a private person or corporation, subject only to the approval of the
Governor and the Council of State. Collateral pledged by the Board for an
encumbrance is limited to the assets, income, and revenues of the Board.

(b) The Board may purchase or rent equipment and
supplies and purchase liability insurance or other insurance to cover the
activities of the Board, its operations, or its employees. (2009-333, s. 7.)

§ 87-64. Examination and license fees; annual renewal.

(a) Each applicant for a license by examination shall
pay to the Board of Refrigeration Contractors a nonrefundable examination fee
in an amount to be established by the Board not to exceed the sum of one
hundred dollars ($100.00).

(b) The license of every person licensed under the
provisions of this statute shall be annually renewed. Effective January 1,
2012, the Board may require, as a prerequisite to the annual renewal of a
license, that licensees complete continuing education courses in subjects
related to refrigeration contracting to ensure the safe and proper installation
of commercial and transport refrigeration work and equipment. On or before
November 1 of each year the Board shall cause to be mailed an application for
renewal of license to every person who has received from the Board a license to
engage in the refrigeration business, as heretofore defined. On or before
January 1 of each year every licensed person who desires to continue in the
refrigeration business shall forward to the Board a nonrefundable renewal fee
in an amount to be established by the Board not to exceed eighty dollars
($80.00) together with the application for renewal. Upon receipt of the
application and renewal fee the Board shall issue a renewal certificate for the
current year. Failure to renew the license annually shall automatically result
in a forfeiture of the right to engage in the refrigeration business.

(c) Any licensee who allows the license to lapse may
be reinstated by the Board upon payment of a nonrefundable late renewal fee in
an amount to be established by the Board not to exceed one hundred sixty
dollars ($160.00) together with the application for renewal. Any person who
fails to renew a license for two consecutive years shall be required to take
and pass the examination prescribed by the Board for new applicants before
being licensed to engage further in the refrigeration business. (1955, c. 912, s. 13; 1969, c. 314; 1979, c. 843, ss. 3, 4;
1998-216, s. 5; 2009-333, s. 8; 2017-10, s. 2.7(a).)

§ 87-64.1. Public awareness program.

The Board shall establish and implement a public awareness
program to inform the general public of the purpose and function of the Board. (1979, c. 712, s. 4.)

Article 6.

Water Well Contractors.

§§ 87-65 through 87-82: Repealed by Session Laws 1977, c.
712, s. 2.

Article 7.

North Carolina Well Construction Act.

§ 87-83. Short title.

This Article shall be known and may be cited as the North
Carolina Well Construction Act. (1967, c. 1157, s. 1.)

§ 87-84. Findings and policy.

The General Assembly of North Carolina finds that improperly
constructed, operated, maintained, or abandoned wells can adversely affect the
public health and the groundwater resources of the State. Consistent with the
duty to safeguard the public welfare, safety, health and to protect and
beneficially develop the groundwater resources of this State, it is declared to
be the policy of this State to require that the location, construction, repair,
and abandonment of wells, and the installation of pumps and pumping equipment
conform to such reasonable requirements as may be necessary to protect the
public welfare, safety, health and groundwater resources. (1967, c. 1157, s. 2.)

§ 87-85. Definitions.

As used in this Article, unless the context otherwise
requires:

(1) "Abandoned well" means a well whose use
has been discontinued, or which is in such a state of disrepair that continued
use for obtaining groundwater or other useful purpose is impracticable.

(2) "Aquifer" means a geologic formation,
group of such formations, or a part of such a formation that is water bearing.

(3) "Artesian well" means a well tapping a
confined or artesian aquifer.

(5) "Construction of wells" means all acts
necessary to construct wells for any intended purpose or use, including the
location and excavation of the well; placement of casings, screens and
fittings; development and testing.

(6) "Installation of pumps and pumping
equipment" means the procedure employed in the placement and preparation
for operation of pumps and pumping equipment, including all construction
involved in making entrances to the well and establishing seals.

(7) "Municipality" means a city, town,
county, district, or other public body created by or pursuant to State law, or
any combination thereof acting cooperatively or jointly.

(8) "Nonpotable mineralized water" means
brackish, saline, or other water containing minerals of such quantity or type
as to render the water unsafe, harmful or generally unsuitable for human consumption
and general use.

(9) "Person" shall mean any and all persons,
including individuals, firms, partnerships, associations, public or private
institutions, municipalities or political subdivisions, governmental agencies,
or private or public corporations organized or existing under the laws of this
State or any other state or country.

(10) "Polluted water" means water containing
organic or other contaminants of such type and quantity as to render it unsafe,
harmful or unsuitable for human consumption and general use.

(10a) "Private drinking water well" means any
excavation that is cored, bored, drilled, jetted, dug, or otherwise constructed
to obtain groundwater for human consumption and that serves or is proposed to
serve 14 or fewer service connections or that serves or is proposed to serve 24
or fewer individuals. The term "private drinking water well" includes
a well that supplies drinking water to a transient noncommunity water system as
defined in 40 Code of Federal Regulations § 141.2 (July 1, 2003 Edition).

(11) "Pumps" and "pumping equipment"
means any equipment or materials utilized or intended for use in withdrawing or
obtaining groundwater including well seals.

(12) "Repair" means work involved in deepening,
reaming, sealing, installing or changing casing depths, perforating, screening,
or cleaning, acidizing or redevelopment of a well excavation, or any other work
which results in breaking or opening the well seal.

(13) "Water supply well" means any well
intended or usable as a source of water supply, but not to include a well
constructed by an individual on land which is owned or leased by him,
appurtenant to a single-family dwelling, and intended for domestic use
(including household purposes, farm livestock, or gardens).

(14) "Well" means any excavation that is cored,
bored, drilled, jetted, dug or otherwise constructed for the purpose of
locating, testing or withdrawing groundwater or for evaluating, testing,
developing, draining or recharging any groundwater reservoirs or aquifer, or that
may control, divert, or otherwise cause the movement of water from or into any
aquifer.

(15) "Well driller," "driller" or
"water well contractor" means any person, firm, or corporation
engaged in the business of constructing wells.

(16) "Well seal" means an approved arrangement
or device used to cap a well or to establish and maintain a junction between
the casing or curbing of a well and the piping or equipment installed therein,
the purpose or function of which is to prevent pollutants from entering the
well at the upper terminal.

No person shall construct, operate, repair, or abandon, or
cause to be constructed, operated, repaired, or abandoned, any well, nor shall
any person install, repair, or cause to be installed or repaired, any pump or
pumping equipment contrary to the provisions of this Article and applicable
rules and regulations, provided that this Article shall not apply to any
distribution of water beyond the point of discharge from the pump. (1967, c. 1157, s. 4; 1987, c. 496, ss. 2, 3.)

§ 87-87. Authority to adopt rules, regulations, and
procedures.

The Environmental Management Commission shall adopt rules
governing the location, construction, repair, and abandonment of wells, the
operation of water wells or well systems with a designed capacity of 100,000
gallons per day or greater, and the installation and repair of pumps and pumping
equipment. The Environmental Management Commission shall be responsible for the
administration of this Article and shall:

(1) Hold public hearings, upon not less than 30 days'
prior notice setting forth the date, place, and time of hearing, and the
proposed rules and regulations to be considered at said public hearing, which
notice shall be published in one or more newspapers having general circulation
throughout the State, in connection with proposed rules and regulations and
amendments thereto.

(2) Enforce the provisions of this Article, and any
rules and regulations not inconsistent with the provisions of this Article
adopted pursuant thereto.

(3) Establish procedures and forms for the submission,
review, approval, and rejection of applications, notifications, and reports
required under this Article.

(4) Issue such additional regulations as may be
necessary to carry out the provisions of this Article.

(5) Neither adopt nor enforce any rule or regulation
that concerns the civil liability of an owner to a well driller for any costs
or expenses of drilling and installing a well for the owner.

(6) Adopt rules governing the permitting and inspection
by the Commission of private drinking water wells with a designed capacity of
100,000 gallons per day or greater.

(a) Prior Permission. - Prior permission shall be
obtained from the Environmental Management Commission for the construction of
(i) any water well or of well systems with a designed capacity of 100,000
gallons per day or greater; and (ii) of any well in a geographical area where
the Environmental Management Commission finds, after public hearings, such
permission to be reasonably necessary to protect the groundwater resources and
the public welfare, safety and health, taking into consideration other
applicable State laws; provided, however, that the Environmental Management
Commission shall not reject any application under this subsection for
permission to construct a well except upon the ground that the well would not
be in compliance with a provision of this Article or with a rule or regulation
of the Environmental Management Commission adopted pursuant to the provisions
of G.S. 87-87 of this Article. Notification of approval or rejection of an
application for permission to construct a well shall be given the applicant
within a period of 15 days after receipt of such application. Private drinking
water wells (i) with a designed capacity of 100,000 gallons per day or greater
or (ii) that are to be constructed in a geographical area where the
Environmental Management Commission has found that prior permission is
necessary shall be subject to permitting and inspection by the Environmental
Management Commission and shall not be subject to permitting and inspection by
a local health department. All other private drinking water wells shall be
subject to permitting and inspection by the local health department as provided
in G.S. 87-97.

(b) Reports. - Any person completing or abandoning any
well shall furnish the Environmental Management Commission a certified record
of the construction or abandonment of such well within a period of 30 days
after completion of construction or abandonment.

(c) Prevention of Contamination. - Every well shall be
constructed and maintained in a condition whereby it is not a source or channel
of contamination of the groundwater supply or any aquifer. Wells subject to the
provisions of subdivision (a)(i) of this section shall be operated in such a
way that they shall not cause the violation of applicable groundwater quality
standards. Contamination as used herein shall mean the act of introducing into
water foreign materials of such a nature, quality, and quantity as to cause
degradation of the quality of the water.

(d) Valves and Casing on Flowing Artesian Wells. -
Valves and casing on all flowing artesian wells shall be maintained in a
condition so that the flow of water can be completely stopped when the well is
not being put to a beneficial use. Valves shall be closed when a beneficial use
is not being made.

(e) Access Port. - Every water-supply well and such
other wells, as may be specified by the Environmental Management Commission,
shall be equipped with a usable access port or air line and to be a minimum of
0.5 inch inside diameter opening so that the position of the water level can be
determined at any time. Such port shall be installed and maintained in such
manner as to prevent entrance of water or foreign material.

(f) Mineralized Water. - Whenever a water-bearing
stratum or aquifer that contains nonpotable mineralized water is encountered in
well construction, the stratum shall be adequately cased or cemented off as
conditions may require so that contamination of the overlying or underlying
groundwater zones will not occur.

(g) Polluted Water. - In constructing any well, all
water-bearing zones that are known to contain polluted water shall be
adequately cased or cemented off so that pollution of the overlying and
underlying groundwater zones will not occur.

(h) Well Test. - Every water-supply well shall be
tested for capacity by a method and for a period of time acceptable to the
Department and depending on the intended use of the well.

(i) Chlorination of the Well. - Upon completion of
the well construction and pump installation, all water-supply wells installed
for the purpose of obtaining groundwater for human consumption shall be
sterilized in accordance with standards for sterilization of drinking water
wells established by the U.S. Public Health Service.

(j) Use of Well for Recharge or Disposal. - No well
shall be used for recharge, injection or disposal purposes without prior
permission from the Environmental Management Commission.

(k) Abandonment of Wells. -

(1) Temporary Abandonment: When any well is temporarily
removed from service, the top of the well shall be sealed with a water-tight
cap or seal.

(2) Permanent Abandonment: Any well that is to be
permanently abandoned shall be filled, plugged, or sealed in such a manner as
to prevent the well from being a channel allowing the vertical movement of
water and a source of contamination of the groundwater supply.

(3) Abandonment of Water Supply Wells for Other Use:
Any water supply well that is removed from service as a potable water supply
source may be used for other purposes, including, but not limited to,
irrigation, commercial use, or industrial use, and such well is not subject to
either subdivision (1) or (2) of this subsection during its use for other
purposes. For purposes of this subsection only, "water supply well"
includes wells constructed by an individual on land which is owned or leased by
the individual, appurtenant to a single-family dwelling, and intended for
domestic use (including nonpotable household purposes, farm livestock, or
gardens). (1967, c. 1157, s. 6; 1973, c. 476, s. 128;
c. 1262, s. 23; 1987, c. 496, s. 4; 1989, c. 727, s. 14; 1998-212, s. 14.9B(a);
2006-202, s. 3; 2006-259, s. 50(a); 2011-255, s. 3.)

§ 87-89. Existing installations.

No well or pump installation in existence and in use on July
6, 1967, shall be required to conform to provisions of subsection (a) of G.S.
87-88, or any rules or regulations adopted pursuant thereto not inconsistent
with the provisions of this Article; provided, however, that any well now or hereafter
abandoned, including any well deemed to have been abandoned, as defined in the
Article, shall, within such time as may be specified by the Environmental
Management Commission, be brought into compliance with the requirements of this
Article and any applicable rules or regulations with respect to abandonment of
wells. It is the intention of the General Assembly that if the provisions of
this section are held invalid as a grant of an exclusive or separate emolument
or privilege, within the meaning of Article I, Sec. 7 of the North Carolina
Constitution, the remainder of this Article shall be given effect without the
invalid provision or provisions. (1967, c. 1157, s. 7;
1973, c. 1262, s. 23.)

§ 87-90. Rights of investigation, entry, access and inspection.

The Environmental Management Commission or Department shall
have the right to conduct such investigations as it may reasonably find
necessary to carry on its duties prescribed in this Article, and for this
purpose to enter at reasonable times upon any property, public or private, for
the purpose of investigating the condition, installation, or operation of any
well or associated equipment, facility, or property, and to require written
statements or the filing of reports under oath, with respect to pertinent
questions relating to the installation or operation of any well: Provided, that
no person shall be required to disclose any secret formula, processes or
methods used in any manufacturing operation or any confidential information
concerning business activities carried on by him or under his supervision. No
person shall refuse entry or access to any authorized representative of the
Environmental Management Commission who requests entry for purposes of
inspection, and who presents appropriate credentials, nor shall any person
obstruct, hamper or interfere with any such representative while in the process
of carrying out his official duties, consistent with the provisions of this
Article. (1967, c. 1157, s. 8; 1973, c. 1262, s. 23.)

§ 87-91. Notice of violation; remedial action order.

(a) Whenever the Environmental Management Commission
has reasonable grounds to believe that there has been a violation of this
Article or any rule adopted pursuant to this Article, the Environmental
Management Commission or Department shall give written notice to the person or
persons alleged to be in violation. The notice shall identify the provision of
this Article or rule adopted pursuant to this Article alleged to be violated
and the facts alleged to constitute the violation. The Environmental Management
Commission may also issue an order requiring specific remedial action. An order
requiring remedial action shall specify the action to be taken, the date by
which the action must be completed, the possible consequences of failing to
comply with the order, and the procedure by which the alleged violator may seek
review of the order.

Any person wishing to contest a penalty, permit decision, or
other order issued under this Article shall be entitled to an administrative
hearing and judicial review conducted according to the procedures established
in Chapter 150B of the General Statutes. (1967, c.
1157, s. 10; 1973, c. 1262, s. 23; 1977, c. 771, s. 4; 1985, c. 728, s. 1;
1987, c. 827, ss. 1, 70.)

§ 87-93: Repealed by Session Laws 1985, c. 728, s. 2.

§ 87-94. Civil penalties.

(a) Any person who violates any provision of this
Article, Article 7A of this Chapter, any order issued pursuant thereto, or any
rule adopted thereunder, shall be subject to a civil penalty of not more than
one thousand dollars ($1,000) for each violation, as determined by the
Secretary of Environmental Quality. Each day of a continuing violation shall be
considered a separate offense. No person shall be subject to a penalty who did
not directly commit the violation or cause it to be committed.

(c) In determining the amount of the penalty the
Secretary shall consider factors set out in G.S. 143B-282.1(b). The procedures
set out in G.S. 143-215.6A and G.S. 143B-282.1 shall apply to civil penalties
assessed under this section.

(d) The Secretary shall notify any person assessed a
civil penalty of the assessment and the specific reasons therefor by registered
or certified mail, or by any means authorized by G.S. 1A-1, Rule 4.

Upon violation of any of the provisions of or any order
issued pursuant to this Article, or duly adopted rule of the Commission
implementing the provisions of this Article, the Secretary of Environmental
Quality may, either before or after the institution of proceedings for the
collection of the penalty imposed by this Article for such violations, request
the Attorney General to institute a civil action in the superior court in the
name of the State upon the relation of the Department of Environmental Quality
for injunctive relief to restrain the violation or require corrective action,
and for such other or further relief in the premises as said court shall deem
proper. Neither the institution of the action nor any of the proceedings
thereon shall relieve any party to such proceedings from the penalty prescribed
by this Article for any violation of same. (1967, c.
1157, s. 13; 1973, c. 1262, s. 23; 1975, c. 842, s. 1; 1977, c. 771, s. 4;
1989, c. 727, s. 16; 1989 (Reg. Sess., 1990), c. 1004, s. 19(b); 1997-443, s.
11A.119(a); 2015-241, s. 14.30(u), (v).)

§ 87-96. Conflict with other laws.

(a) The provisions of any law, rule, or local
ordinance which establish standards affording greater protection to groundwater
resources or public health, safety, or welfare shall prevail, within the
jurisdiction to which they apply, over the provisions of this Article and rules
adopted pursuant to this Article.

(b) Rules relating to public health, wells, or
groundwater adopted by the Commission for Public Health shall prevail over this
Article, rules adopted pursuant to this Article, and rules adopted by a local
board of health pursuant to subsection (c) of this section. This Article shall
not be construed to repeal any law or rule in effect as of July 1, 1989.

(a) Mandatory Local Well Programs. - Each county,
through the local health department that serves the county, shall implement a
private drinking water well permitting, inspection, and testing program. The
local health department shall be the exclusive authority for the permitting of
wells and well systems as described in G.S. 143-138(b17)(2). Local health
departments shall administer the program and enforce the minimum well
construction, permitting, inspection, repair, and testing requirements set out
in this Article and rules adopted pursuant to this Article. No person shall
unduly delay or refuse to permit a well that can be constructed or repaired and
operated in compliance with the requirements set out in this Article and rules
adopted pursuant to this Article.

(a1) Use of Standard Forms. - Local well programs shall
use the standard forms created by the Department for all required submittals
and shall not create their own forms.

(b) Permit Required. - Except for those wells required
to be permitted by the Environmental Management Commission pursuant to
G.S. 87-88, no person shall:

(1) Construct or assist in the construction of a
private drinking water well unless a construction permit has been obtained from
the local health department.

(2) Repair or assist in the repair of a private
drinking water well unless a repair permit has been obtained from the local
health department, except that a permit shall not be required for the repair or
replacement of a pump or tank.

(b1) Inspections. - When a permit is issued under this
section, the local health department shall be responsible for notifying the
appropriate building inspector of the issuance of the well permit. The
appropriate building inspector may request from the local health department the
opportunity to inspect the activities authorized by the permit. The inspection
must be performed prior to the final inspection performed by the local health
department, and the well contractor shall not be required to be onsite for the
inspection by the building inspector. If an inspection by a building inspector
after the final inspection has been performed by the local health department is
determined to be necessary for the protection of public health, safety, or
welfare, the local building inspections department shall be responsible for (i)
the additional costs for the inspection and related activities necessary for
the inspection and (ii) any damages to the well system caused during the
inspection.

(b2) Permit to Include Authorization for Piping and
Electrical. - A permit issued under this section shall also be deemed to
include authorization for all of the following:

(1) The installation, construction, maintenance, or
repair of electrical wiring, devices, appliances, or equipment by a person
certified as a well contractor under Article 7A of this Chapter when running
electrical wires from the well pump to the pressure switch.

(2) The installation, construction, maintenance, or
repair of water pipes by a person certified as a well contractor under Article
7A of this Chapter when running water pipes from the well to the water tank.

(3) The installation of both water pipes and electrical
wiring in a single ditch by a person certified as a well contractor under
Article 7A of this Chapter when running electrical wires from the well pump to
the pressure switch and water pipes from the well to the water tank. The ditch
shall be as deep as the minimum cover requirements for either electrical wiring
or water pipes, whichever is greater.

This subsection shall not be interpreted to prohibit any
person licensed by an independent occupational licensing board from performing
any authorized services within the scope of practice of the person's license.

(c) Permit Not Required for Maintenance or Pump Repair
or Replacement. - A repair permit shall not be required for any private
drinking water well maintenance work that does not involve breaking or opening
the well seal. A repair permit shall not be required for any private drinking
water well repair work that involves only the repair or replacement of a pump
or tank.

(d) Well Site Evaluation. - The local health department
shall conduct a field investigation to evaluate the site on which a private
drinking water well is proposed to be located before issuing a permit pursuant
to this section. The field investigation shall determine whether there is any
abandoned well located on the site, and if so, the construction permit shall be
conditioned upon the proper closure of all abandoned wells located on the site
in accordance with the requirements of this Article and rules adopted pursuant
to this Article. If a private drinking water well is proposed to be located on
a site on which a wastewater system subject to the requirements of Article 11
of Chapter 130A of the General Statutes is located or proposed to be located,
the application for a construction permit shall be accompanied by a plat or
site plan, as defined in G.S. 130A-334.

If the well location marked on the map submitted with an
application to a local well program is also marked with a stake or similar
marker on the property, then the local well program may not require the
contractor to be on site during the on-site predrill inspection, as long as the
contractor is available by telephone to answer questions.

(e) Issuance of Permit. - In accordance with
G.S. 87-97.1 and G.S. 87-97.2, within 30 days of receipt of an
application to construct or repair a well, a local health department shall make
a determination whether the proposed private drinking water well can be
constructed or repaired and operated in compliance with this Article and rules
adopted pursuant to this Article and shall issue a permit or denial
accordingly. If a local health department fails to act within 30 days, the
permit shall automatically be issued, and the local health department may
challenge issuance of the permit as provided in Chapter 150B of the General
Statutes. The local health department may impose any conditions on the issuance
of a construction permit or repair permit that it determines to be necessary to
ensure compliance with this Article and rules adopted pursuant to this Article.
Notwithstanding any other provision of law, no permit for a well that is in
compliance with this Article and the rules adopted pursuant to this Article
shall be denied on the basis of a local government policy that discourages or
prohibits the drilling of new wells.

(e1) Notice for Wells at Contamination Sites. - The
Commission shall adopt rules governing permits issued for private drinking
water wells for circumstances in which the local health department has
determined that the proposed site for a private drinking water well is located
within 1,000 feet of a known source of release of contamination. Rules adopted
pursuant to this subsection shall provide for notice and information of the
known source of release of contamination and any known risk of issuing a permit
for the construction and use of a private drinking water well on such a site.

(f) Expiration and Revocation. - A construction permit
or repair permit shall be valid for a period of five years except that the
local health department may revoke a permit at any time if it determines that
there has been a material change in any fact or circumstance upon which the
permit is issued. The foregoing shall be prominently stated on the face of the
permit. The validity of a construction permit or a repair permit shall not be
affected by a change in ownership of the site on which a private drinking water
well is proposed to be located or is located if the location of the well is
unchanged and the well and the facility served by the well remain under common
ownership.

(f1) Chlorination of the Well. - Upon completion of
construction of a private drinking water well, the well shall be sterilized in
accordance with the standards of drinking water wells established by the United
States Public Health Service.

(g) Certificate of Completion. - Upon completion of
construction of a private drinking water well or repair of a private drinking
water well for which a permit is required under this section, the local health
department shall inspect the well to determine whether it was constructed or
repaired in compliance with the construction permit or repair permit. If the
local health department determines that the private drinking water well has
been constructed or repaired in accordance with the requirements of the
construction permit or repair permit, the construction and repair requirements
of this Article, and rules adopted pursuant to this Article, the local health
department shall issue a certificate of completion. No person shall place a
private drinking water well into service without first having obtained a
certificate of completion. No person shall return a private drinking water well
that has undergone repair to service without first having obtained a
certificate of completion.

(h) Drinking Water Testing. - Within 30 days after it
issues a certificate of completion for a newly constructed private drinking
water well, the local health department shall test the water obtained from the
well or ensure that the water obtained from the well has been sampled and
tested by a certified laboratory in accordance with rules adopted by the
Commission for Public Health. The water shall be tested for the following
parameters: arsenic, barium, cadmium, chromium, copper, fluoride, lead, iron,
magnesium, manganese, mercury, nitrates, nitrites, selenium, silver, sodium,
zinc, pH, and bacterial indicators.

(i) Commission for Public Health to Adopt Drinking
Water Testing Rules. - The Commission for Public Health shall adopt rules
governing the sampling and testing of well water and the reporting of test
results. The rules shall allow local health departments to designate third
parties to collect and test samples and report test results. The rules shall
also provide for corrective action and retesting where appropriate. The
Commission for Public Health may by rule require testing for additional
parameters, including volatile organic compounds, if the Commission makes a
specific finding that testing for the additional parameters is necessary to
protect public health. If the Commission finds that testing for certain
volatile organic compounds is necessary to protect public health and initiates
rule making to require testing for certain volatile organic compounds, the
Commission shall consider all of the following factors in the development of
the rule: (i) known current and historic land uses around well sites and associated
contaminants; (ii) known contaminated sites within a given radius of a well and
any known data regarding dates of contamination, geology, and other relevant
factors; (iii) any GIS-based information on known contamination sources from
databases available to the Department of Environmental Quality; and (iv) visual
on-site inspections of well sites. In addition, the rules shall require local
health departments to educate citizens for whom new private drinking water
wells are constructed and for citizens who contact local health departments
regarding testing an existing well on all of the following:

(1) The scope of the testing required pursuant to this
Article.

(2) Optional testing available pursuant to this
Article.

(3) The limitations of both the required and optional
testing.

(4) Minimum drinking water standards.

(j) Test Results. - The local health department shall
provide test results to the owner of the newly constructed private drinking
water well and, to the extent practicable, to any leaseholder of a dwelling
unit or other facility served by the well at the time the water is sampled. The
local health department shall include with any test results provided to an
owner of a private drinking water well, information regarding the scope of the
required and optional testing as established by rules adopted pursuant to
subsection (i) of this section.

(k) Registry of Permits and Test Results. - Each local
health department shall maintain a registry of all private drinking water wells
for which a construction permit or repair permit is issued that is searchable
by address or addresses served by the well. The registry shall specify the
physical location of each private drinking water well and shall include the
results of all tests of water from each well. The local health department shall
retain a record of the results of all tests of water from a private drinking
water well until the well is properly closed in accordance with the
requirements of this Article and rules adopted pursuant to this Article.

(a) A property owner may apply for, and be issued, a
permit for an irrigation water well, whether the property is connected to, or
served by, a public water system. The application shall be in accordance with
G.S. 87-97 and shall specifically state that the irrigation water well will not
be interconnected to plumbing required that is connected to any public water
system and will be used for irrigation or other nonpotable purposes only.

(b) This section shall not apply if the property is
connected to, or may be served by, a public water system that the public
authority or unit of government operating the public water system is being
assisted by the Local Government Commission.

(c) For purposes of this section, "irrigation
water well" shall mean any water well that is not interconnected to any
plumbing required to be connected to any public water system and that produces
water that is used for irrigation or other nonpotable purposes only. (2015-246, s. 3.5(c).)

§ 87-97.2. Issuance of permit for property within service
area of a public water system.

(a) Notwithstanding G.S. 130A-55(16), 153A-284, 160A-317,
162A-6(a)(14d), and 162A-14(2), a property owner may apply for, and be issued,
a permit for a private drinking water well to serve any undeveloped or
unimproved property located so as to be served by a public water system.

(b) Notwithstanding G.S. 130A-55(16), 153A-284, 160A-317,
162A-6(a)(14d), and 162A-14(2), a property owner of developed or improved
property located so as to be served by a public water system may apply for, and
be issued, a permit for a private drinking water well if the public water
system has not yet installed water lines directly available to the property or
otherwise cannot provide water service to the property at the time the property
owner desires water service.

(c) Upon compliance with this Article, the property
owner receiving a permit pursuant to subsection (a) or (b) of this section
shall not be required to connect to the public water system for so long as the
permitted private drinking water well remains compliant and in use. A property
owner may opt to connect to the public water system if the property owner so
desires. If the property owner opts to connect, the property owner may continue
to operate the private drinking water well if that well is not interconnected
to any plumbing connected to the public water system and that produces water
that is used for irrigation or other nonpotable purposes only.

(d) Nothing in this section shall require a property
owner to install a private drinking water well if the property is located so as
to be served by a public water system and the public water system is willing to
provide service to the property.

(e) This section shall not apply, and a public water
system may mandate connection to that public water system, in any of the
following situations:

(1) The private drinking water well serving the
property has failed and cannot be repaired.

(2) The property is located in an area where the
drinking water removed by the private drinking water well is contaminated or
likely to become contaminated due to nearby contamination.

(3) The public authority or unit of government
operating the public water system is being assisted by the Local Government
Commission.

(a) The Bernard Allen Memorial Emergency Drinking
Water Fund is established under the control and direction of the Department.
The Fund shall be a nonreverting fund consisting of monies appropriated by the
General Assembly or made available to the Fund from any other source.

(b) The Fund may be used to pay for:

(1) Notification, to the extent practicable, of persons
aged 18 and older who reside in any dwelling unit, and the senior official in
charge of any business, at which drinking water is supplied from a private
drinking water well or improved spring that is located within 1,500 feet of,
and at risk from, known groundwater contamination. The senior official in
charge of the business shall take reasonable measures to notify all employees
of the business of the groundwater contamination, including posting a notice of
the contamination in a form and at a location that is readily accessible to the
employees of the business.

(2) The costs of testing of private drinking water
wells and improved springs for suspected contamination up to once every three
years upon request by a person who uses the well, or more frequent testing if
the concentration of one or more contaminants in a private drinking water well
is increasing over time and there is a significant risk that the concentration
of a contaminant will exceed the drinking water action levels set forth in
subsection (c) of this section within a three-year period.

(3) Additional testing to confirm the results of a
previous test.

(4) The temporary or permanent provision of alternative
drinking water supplies to persons whose drinking water well or improved spring
is contaminated. Under this section, an alternative drinking water supply
includes the repair, such as use of a filtration system, or replacement of a contaminated
well or the connection to a public water supply.

(5) Monitoring of filtration systems used in connection
with temporary or permanent alternative drinking water supplies provided
pursuant to this section.

(c) The Department shall disburse monies from the Fund
based on financial need and on the risk to public health posed by groundwater
contamination and shall give priority to the provision of services under this
section to instances when an alternative source of funds is not available. The
Fund shall not be used to provide alternative water supply to households with
incomes greater than three hundred percent (300%) of the current federal
poverty level. The Fund may be used to provide alternative drinking water
supplies if the Department determines that the concentration of one or more
contaminants in the private drinking water well or improved spring exceeds the
federal maximum contaminant level, or the federal drinking water action level
as defined in 40 Code of Federal Regulations § 141.1 through § 141.571 (1 July
2007) and 40 Code of Federal Regulations § 143.3 (1 July 2007). For a
contaminant for which a federal maximum contaminant level or drinking water
action level has not been established, the State groundwater standard
established by the Environmental Management Commission for the concentration of
that contaminant shall be used to determine whether the Fund may be used to
provide alternative drinking water supplies. The Fund may also be used to
provide alternative drinking water supplies as provided in this section if the
Department determines that the concentration of one or more contaminants in a
private drinking water well is increasing over time and that there is a
significant risk that the concentration of a contaminant will exceed the federal
maximum contaminant level or drinking water action level, or the State
groundwater standard. A determination of the concentration of a contaminant
shall be based on a sample of water collected from the private drinking water
well within the past 12 months.

(c1) In disbursing monies from the Fund, the Department
shall give preference to provision of permanent replacement water supplies by
connection to public water supplies and repair or replacement of contaminated
wells over the provision of temporary water supplies. In providing alternative
drinking water supplies, the Department shall give preference to connection to
a public water supply system or to construction of a new private drinking water
well over the use of a filtration system if the Department determines that the
costs of periodic required maintenance of the filtration system would be cost-prohibitive
for users of the alternative drinking water supply.

(c2) If the Department provides an alternative drinking
water supply by extension of a waterline, the Department may disburse from the
Fund no more than fifty thousand dollars ($50,000) per household or other
service connection. For projects where more than 10 residences are eligible for
alternative water supplies under this section, no more than one-third of the
total cost of the project may be paid from the Fund. The Department may combine
monies from the Fund with monies from other sources in order to pay the total
cost of the project.

(c3) The Fund shall be used to provide alternative
drinking water supplies only if the Department determines that the person or
persons who are responsible for the contamination of the private drinking water
well is or are not financially viable or cannot be identified or located and if
the Department determines that one of the following applies:

(1) The contamination of the private drinking water
well is naturally occurring.

(2) The owner of the property on which the private
drinking water well is located did not cause or contribute to the contamination
or control the source of the contamination.

(3) The source of the contamination is the application
or disposal of a hazardous substance or pesticide that occurred without the
consent of the owner of the property on which the private drinking water well
is located.

(c4) The Department may use up to one hundred thousand
dollars ($100,000) annually of the monies in the Fund to pay the personnel and
other direct costs associated with the implementation of this section.

(c5) The Fund shall not be used for remediation of
groundwater contamination.

(c6) Nothing in this section expands, contracts, or
modifies the obligation of responsible parties under Article 9 or 10 of Chapter
130A of the General Statutes, this Article, or Article 21A of this Chapter to
assess contamination, identify receptors, or remediate groundwater or soil
contamination.

(c7) In disbursing monies from the Fund for replacement
water supplies, the Department shall give priority to circumstances in which a
well is contaminated as the result of nonnaturally occurring groundwater
contamination in the area over circumstances in which a well has naturally
occurring contamination.

(d) The Department shall establish criteria by which
the Department is to evaluate applications and disburse monies from this Fund and
may adopt any rules necessary to implement this section.

(e) The Department, in consultation with the
Commission for Public Health and local health departments, shall report no
later than October 1 of each year to the Joint Legislative Oversight Committee
on Agriculture and Natural and Economic Resources and the Fiscal Research
Division of the General Assembly on the implementation of this section. The
report shall include the purpose and amount of all expenditures from the Fund
during the prior fiscal year, a discussion of the benefits and deficiencies
realized as a result of the section, and may also include recommendations for
any legislative action. (2006-255, s. 5.2; 2007-182,
s. 2; 2007-323, s. 12.2(a); 2008-107, s. 12.1; 2013-360, s. 14.14; 2014-100, s.
14.21(e); 2017-10, s. 4.22.)

Article 7A.

Well Contractors Certification.

§ 87-98.1. Title.

This Article may be cited as the North Carolina Well
Contractors Certification Act. (1997-358, s. 2.)

§ 87-98.2. Definitions.

The definitions in G.S. 87-85 and the following definitions
apply in this Article:

(1) Commission. - The Well Contractors Certification
Commission, as established by G.S. 143B-301.11.

(2) Department. - The Department of Environmental
Quality.

(3) Person. - A natural person.

(4) Secretary. - The Secretary of Environmental
Quality.

(5) Well contractor. - A person in trade or business
who undertakes to perform a well contractor activity or who undertakes to
personally supervise or personally manage the performance of a well contractor
activity on the person's own behalf or for any person, firm, or corporation.

It is the purpose of this Article to protect the public
health and safety by ensuring the integrity and competence of well contractors,
to protect and beneficially develop the groundwater resources of the State, to
require the examination of well contractors and the certification of their
competency to supervise or conduct well contractor activity, and to establish
procedures for the examination and certification of well contractors. (1997-358, s. 2.)

§ 87-98.4. Well contractor certification required;
exemptions.

(a) Certification Required. - No person shall perform,
manage, or supervise any well contractor activity without being certified under
this Article. A person who is not a certified well contractor or who is not
employed by a certified well contractor shall not offer to perform any well
contractor activity unless the person utilizes a certified well contractor to
perform the well contractor activity and, prior to the performance of the well
contractor activity, the person discloses to the landowner in writing the name
of the certified well contractor who will perform the well contractor activity,
the certification number of the well contractor, and the name of the company
that employs the certified well contractor.

(b) Exempt persons and activities. - This Article does
not apply to any of the following persons or activities:

(1) A person who is employed by, or performs labor or
services for, a certified well contractor in connection with well contractor
activity performed under the personal supervision of the certified well
contractor.

(2) A person who constructs, repairs, or abandons a
well that is located on land owned or leased by that person.

(3) A person who is employed by a government agency and
who performs well contractor activity solely within the scope of the person's
government employment.

(4) A person who is licensed as a professional engineer
under Chapter 89C of the General Statutes, a geologist under Chapter 89E of the
General Statutes, or a soil scientist under Chapter 89F of the General Statutes
who uses a hand auger to collect soil or water samples or to measure water
levels. This exemption does not include the construction of a monitoring well.

(5) Construction, repair, or abandonment of a well used
for a temporary dewatering activity that is associated with, and necessary to
complete construction of, a utility distribution or collection system, a
building or other structure, or a transportation system, if all of the
following conditions are met:

a. The dewatering well is constructed solely for the
purpose of removing water from or lowering the water table in the immediate
area of the construction activity.

b. The dewatering well is located within 25 feet of
the excavation and is not greater than 25 feet deeper than the excavation.

c. The dewatering well is abandoned in accordance with
rules governing the abandonment of wells adopted by the Environmental
Management Commission pursuant to G.S. 87-87 within 30 days of installation of
the well or within 10 days of completion of the project, whichever is later.

(6) Construction, repair, or abandonment of a well used
for a temporary dewatering activity that is associated with the construction of
a borrow pit if the dewatering activity is located within 15 feet of the
proposed perimeter of the borrow pit.

(7) Exploratory drilling for mining-related
investigations.

(8) Installation of a water level observation well on
property for which a mining permit has been issued under the Mining Act of
1971, Article 7 of Chapter 74 of the General Statutes.

(9) Drilling of a blast hole.

(10) Installation of a cathodic protection anode.

(11) Installation of a wetland monitoring gauge at a
depth of eight feet or less for the purpose of monitoring fluctuations in the
water table.

(12) Installation of a caisson, piling, or structural
pier.

(13) A person who is licensed as a plumbing contractor under
Article 2 of Chapter 87 of the General Statutes who installs pumps or pumping
equipment; installs, breaks, or reinstalls a well seal in accordance with G.S.
87-85(6); or disinfects a well incident to the installation, alteration, or
replacement of pumps or pumping equipment within or near a well. However, the
plumbing contractor shall maintain documentation of having attended a
continuing education course that covered well seal installation, protection,
and sanitation within the last two years prior to the work being performed. The
State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors
shall ensure that continuing education courses covering well seal installation,
protection, and sanitation are available to licensed plumbing contractors
during each six-month continuing education course schedule. The licensed
plumbing contractor shall remain on-site while the work is being performed
until the well is disinfected and sealed.

(14) Construction, repair, or abandonment of a well used
for the exploration or development of oil or gas.

(c) Additional Exemptions. - In addition to the
exemptions set out in subsection (b) of this section, the Commission may exempt
by rule a geophysical activity, construction activity, or other well contractor
activity from the requirements of this Article if the Commission finds that the
activity has a negligible impact on the environment; public health, safety, and
welfare; and the groundwater resources of the State. (1997-358,
s. 2; 1998-129, s. 1; 2001-440, s. 1.1; 2005-386, s. 9; 2009-418, s. 1; 2014-4,
s. 16.)

§ 87-98.5. Types of certification; sole certification.

The Commission, with the advice and assistance of the
Secretary, shall establish the appropriate types of certification for well
contractors. Each certification type established by the Commission shall be the
sole certification required to engage in well contractor activity in the State.
(1997-358, s. 2.)

§ 87-98.6. Well contractor qualifications and examination.

(a) The Commission, with the advice and assistance of
the Secretary, shall establish minimum requirements of education, experience,
and knowledge for each type of certification for well contractors and shall
establish procedures for receiving applications for certification, conducting
examinations, and making investigations of applicants as may be necessary and
appropriate so that prompt and fair consideration will be given to each
applicant.

(b) The Commission, with the advice and assistance of
the Secretary, shall establish minimum requirements of education, experience,
and knowledge for each type of certification for well contractors for the
installation, construction, maintenance, and repair of electrical wiring
devices, appliances, and equipment related to the construction, operation, and
repair of wells. Requirements developed pursuant to this subsection shall apply
only to the initial certification of an applicant and shall not be required as
part of continuing education or as a condition of certification renewal. (1997-358, s. 2; 2014-120, s. 42(b).)

(a) Issuance. - An applicant, upon satisfactorily
meeting the appropriate requirements, shall be certified to perform in the
capacity of a well contractor and shall be issued a suitable certificate by the
Commission designating the level of the person's competency. A certificate
shall be valid for one year or until any of the following occurs:

(1) The certificate holder voluntarily surrenders the
certificate to the Commission.

(2) The certificate is revoked or suspended by the
Commission for cause.

(b) Renewal. - A certificate shall be renewed annually
by payment of the annual fee and proof that the applicant has completed any
professional development hours as may be required by the rules of the
Commission. A person who fails to renew a certificate within 30 days of the
expiration of the certificate must reapply for certification under this
Article.

(c) Temporary Certification. - A person may receive
temporary certification to construct a well upon submission of an application
to the Commission and subsequent approval in accordance with the criteria
established by the Commission and upon payment of a temporary certification
fee. A temporary certification shall be granted to the same person only once
per calendar year and may not be valid for a period in excess of 45 consecutive
days. To perform additional well contractor activity during that same calendar year,
the person shall apply for certification under this Article.

(d) Refusal to Issue a Certificate. - The Commission
shall not issue a certificate under any of the following circumstances:

(1) The applicant has not paid civil penalties assessed
against the applicant under G.S. 87-94 for a violation of this Article, Article
7 of this Chapter, or any rule adopted to implement either of those Articles.

(2) The applicant has not conducted all restoration
activities ordered by the Department related to a violation by the applicant of
Article 7 of this Chapter.

(3) As determined by the Commission, the applicant has
a history of not complying with this Article, Article 7 of this Chapter, or any
rule adopted to implement either of those Articles. (1997-358,
s. 2; 2001-440, s. 1.2; 2007-495, s. 2.)

§ 87-98.8. Disciplinary actions.

The Commission may issue a written reprimand to a well
contractor or, in accordance with the provisions of Article 3A of Chapter 150B
of the General Statutes, may suspend or revoke the certificate of a well
contractor if the Commission finds that the well contractor has:

(1) Engaged in fraud or deception in connection with
obtaining certification or in connection with any well contractor activity.

(2) Failed to use reasonable care, judgment, or the
application of the person's knowledge or ability in the performance of any well
contractor activity.

(3) Been grossly negligent or has demonstrated willful
disregard of any applicable laws or rules governing well construction.

(a) Fees. - The Commission may set a fee for
certification by examination, an annual fee for certification renewal, and a
fee for temporary certification. The fee for certification by examination may
not exceed one hundred dollars ($100.00), the annual fee may not exceed two
hundred dollars ($200.00) per year, and the temporary certification fee shall
not exceed one hundred dollars ($100.00). A well contractor certificate is void
if the well contractor fails to pay the annual fee within 30 days of the date
the fee is due.

(b) Fund. - The Well Construction Fund is created as a
nonreverting account within the Department. All fees collected pursuant to this
Article shall be credited to the Fund. The Fund shall be used for the costs of
administering this Article. (1997-358, s. 2.)

§ 87-98.10. Promotion of training.

The Commission and the Secretary may provide training for
well contractors and cooperate with educational institutions and private and
public associations, persons, or corporations in providing training for well
contractors. (1997-358, s. 2.)

§ 87-98.11. Responsibilities of well contractors.

All persons receiving certification under this Article to
perform well contractor activities in this State shall be responsible for complying
with all statutes, rules, and generally accepted construction practices,
including all local rules or ordinances governing well contractor activities. (1997-358, s. 2.)

§ 87-98.12. Education requirements.

(a) In order to be certified under this Article, a
well contractor shall satisfactorily complete two hours of approved continuing
education each year for the first three years of the contractor's
certification. The Commission shall not require a well contractor properly
certified in accordance with the provisions of this Article and rules adopted
under this Article to obtain continuing education credits for annual renewal of
certification after the contractor's third year of certification, except as
provided in subsection (b) of this section. The Commission shall specify the
scope of required continuing education courses for this purpose and shall
approve continuing education courses.

(b) Notwithstanding subsection (a) of this section, in
order to continue to be certified under this Article, a well contractor against
whom disciplinary action is taken pursuant to the provisions of this Article
and rules adopted under this Article shall satisfactorily complete the number
of hours of approved educational courses required by the Commission for
remedial purposes. The Commission shall specify the scope of required
continuing education courses for this purpose and shall approve continuing
education courses.

Upon violation of this Article, a rule adopted under this
Article, or an order issued under this Article, the Secretary may, either
before or after the institution of proceedings for the collection of any
penalty imposed under this Article for the violation, request the Attorney
General to institute a civil action in the superior court in the name of the
State for injunctive relief to restrain the violation or require corrective
action and for any other relief the court finds proper. Initiating an action
shall not relieve any party to the proceedings from any penalty prescribed by
this Article. (1997-358, s. 2.)

§ 87-98.14. Reciprocity.

To the extent that other states provide for the licensing or
certification of well contractors, the Commission shall permit those
individuals who present valid proof of licensure or certification in good
standing in one or more of those states to sit for examination for a license of
the same or equivalent classification in North Carolina without delay, upon
satisfactory proof furnished to the Commission that the qualifications of the
applicant are equal to the qualifications of holders of similar licenses in
North Carolina and upon payment of the required fee. (2015-246,
s. 3.5(b).)

This Article may be cited as the "Underground Utility
Safety and Damage Prevention Act." (2013-407, s.
2.)

§ 87-116. Declaration of policy and purpose.

The General Assembly of North Carolina hereby declares as a
matter of public policy that it is necessary to protect the citizens and
workforce of this State from the dangers inherent in excavating or demolishing
in areas where underground lines, systems, or infrastructure are buried beneath
the surface of the ground, and it is necessary to protect from costly damage
underground facilities used for producing, storing, conveying, transmitting, or
distributing communication, electricity, gas, petroleum, petroleum products,
hazardous liquids, water, steam, or sewage. In order to carry out this public
policy and to satisfy these compelling interests, the General Assembly has
enacted the provisions of this Article providing for a systematic, orderly, and
uniform process to identify existing facilities in advance of any excavation or
demolition in this State and to implement safe digging practices. (2013-407, s. 2.)

§ 87-117. Definitions.

The following definitions apply in this Article:

(1) APWA. - The American Public Works Association or
its successors.

(2) Business continuation plan. - A plan that includes
actions to be taken in an effort to provide uninterrupted service during
catastrophic events.

(3) Contract locator. - A person hired by an operator
to identify and mark facilities.

(4) Damage. - The substantial weakening of structural
or lateral support of a facility; penetration or destruction of protective
coating, housing, or other protective device of a facility; or the partial or
complete severance of a facility.

(5) Demolish or demolition. - Any operation by which a
structure or mass of material is wrecked, razed, rendered, moved, or removed by
any means, including the use of any tools, equipment, or discharge of
explosives.

(6) Design notice. - A communication to the
Notification Center in which a request for identifying existing facilities for
advance planning purposes is made. A design notice may not be used for
excavation purposes.

(7) Designer. - Any architect, engineer, or other
person who prepares or issues a drawing or blueprint for a construction or
other project that requires excavation or demolition work.

(8) Emergency. - An event involving a clear and
imminent danger to life, health, or property, the interruption of essential
utility services, or the blockage of transportation facilities, including
highways, railways, waterways, or airways that require immediate action.

(9) Excavate or excavation. - An operation for the
purpose of the movement or removal of earth, rock, or other materials in or on
the ground by use of manual or mechanized equipment or by discharge of
explosives, including, but not limited to, auguring, backfilling, boring,
digging, ditching, drilling, directional drilling, driving, grading, horizontal
directional drilling, well drilling, plowing-in, pounding, pulling-in, ripping,
scraping, trenching, and tunneling.

(10) Excavator. - A person engaged in excavation or
demolition.

(11) Extraordinary circumstances. - Circumstances that
make it impossible for the operator to comply with the provisions of this
Article, including hurricanes, tornadoes, floods, ice, snow, and acts of God.

(12) Facility. - Any underground line, underground
system, or underground infrastructure used for producing, storing, conveying,
transmitting, identifying, locating, or distributing communication,
electricity, gas, petroleum, petroleum products, hazardous liquids, water,
steam, or sewage. Provided there is no encroachment on any operator's right-of-way,
easement, or permitted use, for the purposes of this Article, the following
shall not be considered an underground facility: (i) swimming pools and
irrigation systems; (ii) petroleum storage systems under Part 2A of Article 21A
of Chapter 143 of the General Statutes; (iii) septic tanks under Article 11 of
Chapter 130A of the General Statutes; and (iv) liquefied petroleum gas systems
under Article 5 of Chapter 119 of the General Statutes, unless the system is
subject to Title 49 C.F.R. § 192 or § 195.

(13) Locator. - An individual who identifies and marks
facilities for operators who has been trained and whose training has been
documented.

(16) Notice. - Oral, written, or electronic communication
to the Notification Center from any person planning to excavate or demolish in
the State that informs an operator of the person's intent to excavate or
demolish.

(17) Notification Center. - A North Carolina member-owned
not-for-profit corporation sponsored by operators that will provide a system
through which a person can notify operators of proposed excavations and
demolitions and submit reports of alleged violations of this Article.

(18) Operator. - Any person, public utility,
communications or cable service provider, municipality, electrical utility, or
electric or telephone cooperative that owns or operates a facility in this
State.

(19) Person. - Any individual, owner, corporation,
partnership, association, or any other entity organized under the laws of any
state, any political subdivision of a state, or any other instrumentality of a
state, or any authorized representative thereof.

(20) Positive response. - An automated information system
that allows excavators, locators, operators, and other interested parties to
determine the status of a locate request.

(21) Subaqueous. - A facility that is under a body of
water, including rivers, streams, lakes, waterways, swamps, and bogs.

(22) Tolerance zone. - If the diameter of the facility is
known, the distance of one-half of the known diameter plus 24 inches on either
side of the designated center line or, if the diameter of the facility is not
marked, 24 inches on either side of the outside edge of the mark indicating a
facility or, for subaqueous facilities, a clearance of 15 feet on either side
of the indicated facility.

The provisions in this Article supersede and preempt any
ordinance adopted by a city or county that purports to do any of the following:

(1) Require operators to obtain permits from a city or
county in order to identify facilities.

(2) Require premarking or marking of facilities.

(3) Specify the types of paint or other marking devices
that are used to identify facilities.

(4) Require removal of unexpired marks. The removal of
expired marks shall be the responsibility of the city or county. (2013-407, s. 2.)

§ 87-119. Costs associated with compliance; effect of
permit.

Any costs or expenses associated with an excavator's
compliance with the requirements of this Article shall not be charged to any
operator. Any costs or expenses associated with an operator's compliance with
the requirements of this Article shall not be charged to any excavator. The
Notification Center may not impose any charge on any person giving notice to
the Notification Center. This section shall not affect costs related to the
operation of the Notification Center apportioned to an operator pursuant to
G.S. 87-120(b). This section shall not excuse an operator or excavator from
liability for any damage or injury for which the operator or excavator would be
responsible under applicable law. (2013-407, s. 2.)

§ 87-120. Notification Center; responsibilities.

(a) The operators in the State shall maintain a
Notification Center for the sole purpose of providing the services required by
this Article. The Notification Center shall maintain information concerning
receipt of notification of proposed excavation and demolition activities as
provided in this Article and shall maintain information received from operators
concerning the location of the operators' facilities and the operators'
positive responses to marking of the facilities. The Notification Center shall
also receive, maintain, and provide general administration of reports of
alleged violations of this Article and responses. The Notification Center is
not responsible in any way for identifying or marking facilities for operators.
The Notification Center is not responsible in any way for resolving reports of
alleged violations of this Article. All operators in the State shall join the
Notification Center as provided in subsection (b) of this section, and they
shall use the services of the Notification Center to perform the acts required
by the provisions of this Article. There shall be only one Notification Center
for the State of North Carolina. The Notification Center is not an agency of
the State or any of the State's political subdivisions and is not subject to
the provisions of Chapter 132 or Chapter 133 of the General Statutes.

(b) Operators who are members of the Notification
Center by whatever name that is in existence on October 1, 2013, must remain
members. Operators with more than 50,000 customers or 1,000 miles of facilities
who are not members on October 1, 2013, must join no later than October 1,
2014. Operators with more than 25,000 customers or 500 miles of facilities who
are not members on October 1, 2013, must join no later than October 1, 2015.
All operators that do not meet one of the criteria provided in this subsection
must join no later than October 1, 2016. Each engineering division of the
Department of Transportation established pursuant to G.S. 136-14.1 must join no
later than October 1, 2016. The board of directors of the Notification Center
shall develop a reasonable method of apportioning the costs of operating the
Notification Center among the member operators. Prior to adopting a method of
determining such cost allocation, the board of directors shall publish the
proposed method of cost allocation to the member operators, and the proposed
method of cost allocation shall be approved by the member operators.

(c) The Notification Center shall have the following
duties and responsibilities:

(1) Maintain a record of the notices received under
subsection (d) of this section for at least four years.

(2) Maintain a record of reports of alleged violations
of this Article received under subsection (e) of this section for at least four
years, including responses to such reports.

(3) Receive and transmit notices as provided in
subsection (d) of this section.

(4) Develop and update, as needed, a business
continuation plan.

(5) Notify those persons against whom reports of
alleged violations of this Article have been made and receive and maintain
information submitted from such persons in defense against the allegations.

(6) Provide a positive response system.

(7) Establish and operate a damage prevention training
program for members of the Notification Center. No person may recover damages
in any manner or form from the Notification Center arising out of or related to
the manner in which the Notification Center conducts a damage prevention
training program or receives, transmits, or otherwise administers a report of
an alleged violation of this Article.

(d) The Notification Center shall receive notice from
any person intending to excavate or demolish in the State and shall, at a
minimum, transmit the following information to the appropriate operator:

(1) The name, address, and telephone number of the
person providing the notice and, if different, the person responsible for the
proposed excavation or demolition.

(2) The starting date of the proposed excavation or
demolition.

(3) The anticipated duration of the proposed excavation
or demolition.

(4) The type of proposed excavation or demolition
operation to be conducted.

(5) The location of the proposed excavation or
demolition.

(6) Whether or not explosives are to be used in the proposed
excavation or demolition.

(e) The Notification Center shall receive reports of
alleged violations of this Article. The Notification Center shall contact
persons against whom reports have been filed to inform them of the alleged
violation within 10 days of the filing of the report. The Notification Center
shall maintain the following information regarding reports of alleged
violations:

(1) The name, address, and telephone number of the
person making the report;

(2) The nature of the report, including the statute
that is alleged to have been violated;

(3) Information provided by the person making the
report, including correspondence, both written and electronic, pictures, and
videos; and

(4) Information provided by the person against whom the
report has been filed, including correspondence, both written and electronic,
pictures, and videos. (2013-407, s. 2.)

§ 87-121. Facility operator responsibilities.

(a) An operator shall provide to the excavator the
following:

(1) The horizontal location and description of all of
the operator's facilities in the area where the proposed excavation or
demolition is to occur. The location shall be marked by stakes, soluble paint,
flags, or any combination thereof, as appropriate, depending upon the
conditions in the area of the proposed excavation or demolition. The operator
shall, when marking as provided under this subdivision, use the APWA Uniform
Color Code. If the diameter or width of the facility is greater than four
inches, the dimension of the facility shall be indicated at least every 25 feet
in the area of the proposed excavation or demolition. An operator who operates
multiple facilities in the area of the proposed excavation or demolition shall
locate each facility.

(2) Any other information that would assist the
excavator in identifying and thereby avoiding damage to the marked facilities.

(b) Unless otherwise provided in a written agreement
between the operator and the excavator, the operator shall provide to the
excavator the information required by subsection (a) of this section within the
times provided below:

(1) For a facility, within three full working days
after the day notice of the proposed excavation or demolition was provided to
the Notification Center.

(2) For a subaqueous facility, within 10 full working
days after the day notice of the proposed excavation or demolition was provided
to the Notification Center.

(3) If the operator declares an extraordinary
circumstance, the times provided in this subsection shall not apply.

(c) The operator shall provide a positive response to
the Notification Center before the expiration of the time provided in
subsection (b) of this section. The response shall indicate whether and to what
extent the operator is able to provide the information required by subsection
(a) of this section to respond to the notice from the excavator.

(d) If the operator determines that provisions for
marking subaqueous facilities are required, the operator will provide a
positive response to the Notification Center not more than three full working
days after notice has been provided by the excavator.

(e) If extraordinary circumstances prevent the
operator from marking the location of the facilities within the time specified
in subsection (b) of this section, the operator shall either notify the
excavator directly or notify the excavator through the Notification Center.
When providing the notification under this subsection, the operator shall state
the date and time when the location will be marked.

(f) An operator shall prepare or cause to be prepared
installation records of all facilities installed on or after the date this
Article becomes effective in a public street, alley, or right-of-way dedicated
to public use, excluding service drops and services lines. The operator shall
maintain these records in the operator's possession while the facility is in
service.

(g) All facilities installed by or on behalf of
operators on or after the date this Article becomes effective shall be
electronically locatable using a locating method that is generally accepted by
operators in the particular industry or trade in which the operator is engaged.

(h) A locator shall notify the operator if the locator
becomes aware of an error or omission in the records or documentation showing
the location of the operator's facilities. The operator must update its records
to correct any error or omission.

(i) An operator may reject an excavation or
demolition notice due to homeland security considerations based upon federal
statutes or federal regulations until the operator can confirm the legitimacy
of the notice. The operator shall notify the person making the notice of the
denial and may request additional information through the positive response
system.

(j) Gravity fed sanitary sewers installed prior to
the date this Article becomes effective and all storm water facilities shall be
exempt from the location requirements provided in subsection (a) of this
section. Neither the excavator nor the person financially responsible for the
excavation will be liable for any damage to an unmarked gravity fed sanitary
sewer line or unmarked storm water facility if the person doing the excavation
exercises due care to protect existing facilities when there is evidence of the
existence of those facilities near the proposed excavation area.

(k) An operator who does not become a member of the
Notification Center as required by G.S. 87-120(b) may not recover for damages
to a facility caused by an excavator who has complied with the provisions of
this Article and has exercised reasonable care in the performance of the
excavation or demolition. (2013-407, s. 2.)

§ 87-122. Excavator responsibilities.

(a) Before commencing any excavation or demolition
operation, the person responsible for the excavation or demolition shall
provide or cause to be provided notice to the Notification Center of his or her
intent to excavate or demolish. Notice for any excavation or demolition that
does not involve a subaqueous facility must be given within three to 12 full
working days before the proposed commencement date of the excavation or
demolition. Notice for any excavation or demolition in the vicinity of a
subaqueous facility must be given within 10 to 20 full working days before the
proposed commencement date of the excavation or demolition. Notice given
pursuant to this subsection shall expire 15 full working days after the date
notice was given. No excavation or demolition may continue after this 15-day
period unless the person responsible for the excavation or demolition provides
a subsequent notice which shall be provided in the same manner as the original
notice required by this subsection. When demolition of a building is proposed,
the operator shall be given a reasonable time in which to remove or protect the
operator's facilities before the demolition commences.

(b) The notice required by subsection (a) of this
section shall, at a minimum, contain all of the following:

(1) The name, address, and telephone number of the
person providing the notice.

(2) The anticipated starting date of the proposed
excavation or demolition.

(3) The anticipated duration of the proposed excavation
or demolition.

(4) The type of proposed excavation or demolition
operation to be conducted.

(5) The location of the proposed excavation or
demolition, not to exceed one-quarter mile in geographical length, or five
adjoining addresses, not to exceed one-quarter mile in geographical length.

(6) Whether or not explosives are to be used in the
proposed excavation or demolition.

(c) An excavator shall comply with the following:

(1) When the excavation area cannot be clearly and
adequately identified within the area described in the notice, the excavator
shall designate the route, specific area to be excavated, or both by premarking
the area before the operator performs a locate. Premarking shall be made with
soluble white paint, white flags, or white stakes.

(2) Confirm through the Notification Center's positive
response system prior to excavation or demolition that all operators have
responded and that all facilities that may be affected by the proposed
excavation or demolition have been marked.

(3) Plan the excavation or demolition to avoid damage
to or minimize interference with facilities in or near the construction area.

(4) Begin excavation or demolition prior to the
specified waiting period only if the excavator has confirmed that all operators
have responded with an appropriate positive response.

(5) If the operator declares extraordinary
circumstances, the excavator shall not excavate or demolish until after the
time and date that the operator has provided in the operator's response.

(6) If an operator fails to respond to the positive
response system, the excavator may proceed if there are no visible indications
of a facility at the proposed excavation or demolition area, such as a pole,
marker, pedestal, meter, or valve. However, if the excavator is aware of or
observes indications of an unmarked facility at the proposed excavation or
demolition area, the excavator shall not begin excavation or demolition until
an additional call is made to the Notification Center detailing the facility
and an arrangement is made for the facility to be marked by the operator within
three hours from the time the additional call is received by the Notification
Center.

(7) Beginning on the date provided in the excavator's
notice to the Notification Center, the excavator shall preserve the staking,
marking, or other designation until they are no longer required. When a mark is
no longer visible or is destroyed, but the excavation or demolition continues
in the vicinity of the facility, the excavator shall request a re-mark from the
Notification Center to ensure the protection of the facility.

(8) When demolition of a building is proposed, the
excavator shall give the operator a reasonable time in which to remove or
protect the operator's facilities before demolition commences.

(9) An excavator shall not perform any excavation or
demolition within the tolerance zone unless the excavator complies with all of
the following conditions:

a. The excavator shall not use mechanized equipment,
except noninvasive equipment specifically designed or intended to protect the
integrity of the facility, within the marked tolerance zone of an existing
facility until:

1. The excavator has visually identified the precise
location of the facility or has visually confirmed that no facility is present
up to the depth of excavation;

2. The excavator has taken reasonable precautions to
avoid any substantial weakening of the facility's structural or lateral
support, or both, or penetration or destruction of the facilities or their
protective coatings; and

3. The excavator may use mechanical means, as
necessary, for the initial penetration and removal of pavement or other
materials requiring use of mechanical means of excavation but only to the depth
of the pavement or other materials. For parallel type excavations within the
tolerance zone, the existing facility shall be visually identified at intervals
not to exceed 50 feet along the line of excavation to avoid damages. The
excavator shall exercise due care at all times to protect the facilities when
exposing these facilities.

b. The excavator shall maintain clearance between a
facility and the cutting edge or point of any mechanized equipment, taking into
account the known limit of control of the cutting edge or point, as may be
reasonably necessary to avoid damage to the facility.

c. The excavator shall provide support for facilities
in and near the excavation or demolition area, including backfill operations,
as may be reasonably required by the operator for the protection of the
facilities.

(10) The excavator shall not use mechanized equipment
within 24 inches of a facility that is a gas, oil, petroleum, or electric
transmission line unless the facility operator has consented to the use in
writing and the operator's representative is on site during the use of the
mechanized equipment. For purposes of this subdivision, the term "gas,
oil, petroleum transmission line" has the same meaning as the term
"transmission line" in Title 49 C.F.R. § 192.3, and the term
"electric transmission line" has the same meaning as the term
"transmission line" in G.S. 62-100(7). (2013-407,
s. 2.)

§ 87-123. Training.

(a) Every person who is an excavator, locator, or
operator under this Article by virtue of engaging in these activities in the
course of a business or trade has a duty to provide education and training to
employees and to document such education and training. The training shall
include sufficient information, guidance, and supervision such that employees
can competently and safely operate the equipment used in the course of the
business or trade and complete assigned tasks in a competent and safe manner
while minimizing the potential for damage.

(b) When an excavator, locator, or operator under this
Article retains an independent contractor to perform activities regulated by
this Article, the duty set forth in subsection (a) of this section shall not
apply to the excavator, locator, or operator. Independent contractors shall
provide training to their employees in accordance with this section.

(c) Excavation shall be conducted in accordance with
OSHA Standard 1926 and under the direction of a competent person, as defined
therein.

The notice requirements in G.S. 87-122(a) and
G.S. 87-122(b) do not apply to the following:

(1) An excavation or demolition performed by the owner
of a single-family residential property on his or her own land that does not
encroach on any operator's right-of-way, easement, or permitted use.

(2) An excavation or demolition performed by the owner
of a single-family residential property on his or her own land that encroaches
on any operator's right-of-way, easement, or permitted use that is performed
with nonmechanized equipment.

(3) An excavation or demolition that involves the
tilling of soil for agricultural or gardening purposes.

(4) An excavation or demolition for agricultural
purposes, as defined in G.S. 106-581.1, performed on property that does
not encroach on any operator's right-of-way, easement, or permitted use.

(5) An excavation by an operator or surveyor with
nonmechanized equipment for the following purposes:

a. Locating for a valid notification request or for
the minor repair, connection, or routine maintenance of an existing facility or
survey pin.

b. Probing underground to determine the extent of gas
or water migration.

(6) An excavation or demolition performed when those
responsible for routine maintenance of a right-of-way are conducting
maintenance activities within the right-of-way. Maintenance activities shall
include resurfacing, milling, emergency replacement of signs critical for
maintaining safety, or the reshaping of shoulders and ditches to the original
road profile. Maintenance activities do not include the initial installation of
traffic signs, traffic control equipment, or guardrails.

(7) An excavation or demolition performed by a railroad
entirely on land which the railroad owns or operates or, in the event of an
emergency, on adjacent land. No provision in this Article shall apply to any
railroad which owns, operates, or permits facilities under land which the
railroad owns or operates.

(8) An excavation of a grave space, as defined in
G.S. 65-48(10), the installation of a monument or memorial at a grave
space, or an excavation related to the placement of a temporary structure or
tent by a cemetery regulated under Chapter 65 of the General Statutes that does
not encroach on any operator's right-of-way, easement, or permitted use. (2013-407, s. 2; 2017-57, s. 34.40(a).)

§ 87-125. Notice in case of emergency excavation or
demolition.

(a) An excavator performing an emergency excavation or
demolition is not required to give notice to the Notification Center as
provided in G.S. 87-122. However, the excavator shall, as soon as practicable,
give oral notice to the Notification Center which shall include a description
of the circumstances justifying the emergency. The excavator may request
emergency assistance from each affected operator in locating and providing
immediate protection to the facilities in the affected area.

(b) The declaration of an emergency excavation or
demolition shall not relieve any party of liability for causing damage to an
operator's facilities even if those facilities are unmarked.

(c) Any person who falsely claims that an emergency
exists requiring an excavation or demolition shall be guilty of a Class 3
misdemeanor. (2013-407, s. 2.)

§ 87-126. Notification required when damage is done.

(a) The excavator performing an excavation or
demolition that results in any damage to a facility shall immediately upon
discovery of the damage notify the Notification Center and the facility
operator, if known, of the location and nature of the damage. The excavator
shall allow the operator reasonable time to accomplish necessary repairs before
completing the excavation or demolition in the immediate area of the facility.
The excavator shall delay any backfilling in the immediate area of the damaged
facility until authorized by the operator. The operator or qualified personnel
authorized by the operator shall repair any damage to the facility.

(b) An excavator who is responsible for an excavation
or demolition where any damage to a facility results in the discharge of
electricity or escape of any flammable, toxic, or corrosive gas or liquid, or
that endangers life, health, or property shall immediately notify emergency
responders, including 911 services, the Notification Center, and the facility
operator. The excavator shall take reasonable measures to protect himself or herself,
other persons in immediate danger, members of the general public, property, and
the environment until the operator or emergency responders arrive and complete
an assessment of the situation. (2013-407, s. 2.)

§ 87-127. Design notices.

(a) A designer may submit a design notice to the
Notification Center. The design notice shall describe the tract or parcel of
land for which the design notice has been submitted with sufficient
particularity, as defined by policies and procedures adopted by the Notification
Center, to allow the operator to ascertain the precise tract or parcel of land
involved.

(b) Within 10 working days, not including the day the
notice was given, after a design notice for a proposed project has been
submitted to the Notification Center, the operator shall respond in one of the
following manners:

(1) By designating the location of all facilities owned
by the operator within the area of the proposed excavation as provided in G.S.
87-121(a).

(2) By providing to the person submitting the design
notice the best available description of all facilities in the area designated
by the design notice, which may include drawings marked with a scale,
dimensions, and reference points for underground utilities already built in the
area or other facility records that are maintained by the operator.

(3) Allowing the person submitting the design notice or
any other authorized person to inspect the drawings or other records for all
facilities within the proposed area of excavation at a location that is acceptable
to the operator.

(c) An operator may reject a design notice based upon
homeland security considerations pending the operator obtaining additional
information confirming the legitimacy of the notice. The operator shall notify
the person making the request through a design notice of the denial and may
request additional information through the positive response system. (2013-407, s. 2.)

§ 87-128. Absence of facility location.

If an operator who has been given notice as provided in G.S.
87-120(d) by the Notification Center fails to respond to that notice as
provided in G.S. 87-121 or fails to properly locate the facility, the person
excavating is free to proceed with the excavation. Neither the excavator nor
the person financially responsible for the excavation will be liable to the
nonresponding or improperly responding operator for damages to the operator's
facilities if the person doing the excavating exercises due care to protect
existing facilities when there is evidence of the existence of those facilities
near the proposed excavation area. (2013-407, s. 2.)

(a) There is hereby established the Underground Damage
Prevention Review Board to review reports of alleged violations of this
Article. The members of the Board shall be appointed by the Governor. The Board
shall consist of 15 members as follows:

(1) A representative from the North Carolina Department
of Transportation;

(2) A representative from a facility contract locator;

(3) A representative from the Notification Center;

(4) A representative from an electric public utility;

(5) A representative from the telecommunications
industry;

(6) A representative from a natural gas utility;

(7) A representative from a hazardous liquid
transmission pipeline company;

(8) A representative recommended by the League of
Municipalities;

(9) A highway contractor licensed under G.S. 87-10(b)(2)
who does not own or operate facilities;

(10) A public utilities contractor licensed under G.S. 87-10(b)(3)
who does not own or operate facilities;

(11) A surveyor licensed under Chapter 89C of the General
Statutes;

(12) A representative from a rural water system;

(13) A representative from an investor-owned water
system;

(14) A representative from an electric membership
corporation; and

(15) A representative from a cable company.

(a1) Each member of the Board shall be appointed for a
term of four years. Members of the Board may serve no more than two consecutive
terms. Vacancies in appointments made by the Governor occurring prior to the
expiration of a term shall be filled by appointment for the unexpired term.

(a2) No member of the Board may serve on a case where
there would be a conflict of interest.

(a3) The Governor may remove any member at any time for
cause.

(a4) Eight members of the Board shall constitute a
quorum.

(a5) The Governor shall designate one member of the
Board as chair.

(a6) The Board may adopt rules to implement this
Article.

(b) The Notification Center shall transmit all reports
of alleged violations of this Article to the Board, including any information
received by the Notification Center regarding the report.

(b1) The Board shall review all reports of alleged
violations of this Article and accompanying information. If the Board
determines that a person has violated any provision of this Article, the Board
shall determine the appropriate action or penalty to impose for each such
violation. Actions and penalties may include training, education, and a civil
penalty not to exceed two thousand five hundred dollars ($2,500). The Board
shall notify each person who is determined to have violated this Article in
writing of the Board's determination and the Board's recommended action or
penalty. A person determined to be in violation of this Article may request a
hearing before the Board, after which the Board may reverse or uphold its
original finding. If the Board recommends a penalty, the Board shall notify the
Utilities Commission of the recommended penalty, and the Utilities Commission
shall issue an order imposing the penalty.

(c) A person determined by the Board under subsection
(b1) of this section to have violated this Article may appeal the Board's
determination by initiating an arbitration proceeding before the Utilities
Commission within 30 days of the Board's determination. If the violating party
elects to initiate an arbitration proceeding, the violating party shall pay a
filing fee of two hundred fifty dollars ($250.00) to the Utilities Commission,
and the Utilities Commission shall open a docket regarding the report. The
Utilities Commission shall direct the parties enter into an arbitration
process. The parties shall be responsible for selecting and contracting with
the arbitrator. Upon completion of the arbitration process, the Utilities
Commission shall issue an order encompassing the outcome of the binding
arbitration process, including a determination of fault, a penalty, and
assessing the costs of arbitration to the non-prevailing party.

(c1) A person may timely appeal an order issued by the
Utilities Commission pursuant to this section to the superior court division of
the General Court of Justice in the county where the alleged violation of this
Article occurred or in Wake County, for trial de novo within 30 days of entry
of the Utilities Commission's order. The authority granted to the Utilities
Commission within this section is limited to this section and does not grant
the Utilities Commission any authority that they are not otherwise granted
under Chapter 62 of the General Statutes.

(d) The provisions of this Article do not affect any
civil remedies for personal injury or property damage otherwise available to
any person, except as otherwise specifically provided for in this Article. The
penalty provisions of this Article are cumulative to and not in conflict with
provisions of law with respect to civil remedies for personal injury or
property damage. The clear proceeds of any civil penalty assessed under this
section shall be used as provided in Section 7(a) of Article IX of the North
Carolina Constitution. In any arbitration proceeding before the Utilities
Commission, any actions and penalties assessed against any person for violation
of this Article shall include the actions and penalties set out in subsection
(b1) of this section. (2013-407, s. 2; 2015-286, s.
3.12.)

§ 87-130. Severability.

If any provision of this Article or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications, and to this end the provisions of this
Article are severable. (2013-407, s. 2.)